5. SOCIAL RESPONSIBILITY IN BUSINESS, 5.2. Human rights due diligence
5.2. Human rights due diligence
[GRI 2-23] [GRI 2-24] [GRI 2-25] [GRI 2-26] [GRI 2-27] [ESRS SBM-3] [ESRS S1-3]
Budimex Group complies with the provisions of the following documents:
- Universal Declaration of Human Rights,
- International Charter on Human Rights,
- UN Guiding Principles on Business and Human Rights,
- OECD Guidelines for Multinational Enterprises.
This means a commitment in all areas of activity to:
- respect and observe human rights,
- avoid significant negative impacts on human rights,
- conduct appropriate due diligence processes with regard to entities with which we have business relationships, in all areas of activity.
We are bound by the Ferrovial Group’s common Principles for the Protection of Human Rights. The goal of the document is to raise companies’ awareness of human rights and increase their capacity to address issues in this sphere. It obligates all employees, customers, suppliers and contractors in relations with the Budimex Group to, among other things, non-discrimination and the promotion of equal opportunities, and to respect the prohibition of child and forced labor, as well as the right to organize and engage in collective bargaining. The principles described in the document are rooted in the Universal Declaration of Human Rights adopted by the United Nations and the eight international conventions identified in the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work.
The documents that, at the operational level, ensure that human rights are respected in the day-to-day operations of our companies are approved by the Management Board: Code of Conduct. the Rules of Conduct for Business Partners/Code of Conduct for Business Partners, the Compliance Policy and the Anti-Harassment and Discrimination instruction. They serve as reference points for Budimex Group employees and business partners, among other things, describing rules and guidelines for conduct in the listed types of relationships and areas of influence of the company. An important element of the Group’s human rights due diligence is the existing whistleblowing mechanisms described in Section 6.1.
As part of its strategic goals related to sustainability, the Budimex Group plans to expand due diligence procedures in its supply chain. The current rules for enforcing human rights from business partners are described in Section 7.5.
Responsibility and resources involved in the management of human rights topics
Responsibility for making and implementing decisions in the area of human rights is assigned to Management Board of Budimex SA’s (strategic decisions) governing bodies and individual operating units and positions. Compliance with the Code of Conduct at Budimex SA is guarded by Budimex SA’s Ethics Committee (see Section 6.4. for more information on the Committee). In addition, at Budimex SA, Mostostal Kraków and FBSerwis, a compliance function has been set up, responsible, among other things, for ensuring that the companies’ operations comply with laws and internal regulations, including those in the area of human rights (e.g. those concerning anti-mobbing and discrimination).
In any necessary case related to the management of significant human rights issues, there is a possibility of consultation between Budimex SA and subsidiaries, e.g. as regards knowledge sharing and exchange of experience – for example, in adapting internal regulations of companies to the provisions of the whistleblower directive [1].
Identification and assessment of human rights risks and impacts
The Budimex Group identifies human rights risks and impacts on an ongoing basis and adjusts internal regulations as necessary. The Group analyzes from this angle not only events of key importance to the companies’ operations (e.g. policy change, market entry, new projects), but also changes in the labor market. An example is the increase in the share of foreign workers in the Polish labor market, which can result in an increased risk of xenophobic behavior.
Human rights risks are identified in the context of labor rights, personal data protection, information protection, occupational health and safety, in the area of purchasing, as well as in operational activities under ongoing contracts. A process for identifying risks and impacts that includes the topic of human rights is being carried out for both own operations and important business relationships, including key elements of the supply chain. It is carried out on the basis of the Risk Management Procedure, which includes stakeholder consultations held with internal experts representing each area of the organization’s operations. In addition, there is regular communication with trade unions regarding the protection of human rights. Dialogue with stakeholders exposed to negative impacts is undertaken reactively and on a case-by-case basis. With regard to ongoing projects, this is done through the contract communication process described in the Policy for Cooperation with Local Communities.
The procedure for identifying risks and human rights impacts is automatically triggered when new business relationships are established. Budimex SA and FBSerwis have a due diligence process in place for entities defined as consortium partners. who complete the Consortium Partner Questionnaire, which is an appendix to the Business Partner Due Diligence operating manual.
The Budimex Group maintains a risk register, which also includes human rights risks identified by organizational units. Under the existing system for assessing risks and impacts. no negative impact of the Group on human rights or violations in this area have been identified, detected or reported.
General information on the risk management system can be found in Section 6.2.
Actions taken in connection with the assessment of human rights risks and impacts
Responsibility for specific areas of risk management has been distributed among experts, managers and directors. It is their responsibility to identify the risks included in the register and to assess and prioritize them, taking into account the requirement to involve stakeholders, including groups exposed to negative impacts. If significant negative impacts on human rights are identified, appropriate corrective action is taken. The system for preventing and mitigating impacts and implementing corrective actions for significant human rights impacts also includes the supply chain – see Section 7.5. for more information.
Monitoring and communication of human rights impacts
The Budimex Group monitors and evaluates the effectiveness of its response to human rights risks and impacts, and uses this information to continuously improve its processes and systems. This includes involving stakeholders and vulnerable groups in evaluating the effectiveness of any steps taken. With regard to ongoing projects, this is done on the basis of Budimex SA’s manual Cooperation with Local Communities on Contracts.
Based on data from the whistleblowing system, quarterly reports are produced on, among other things, potential human rights violations. There were no such reports in 2023.
Commitment to conduct corrective actions
The Budimex Group is committed to acting independently or cooperating in corrective actions for the benefit of entities, such as employees and communities, where it exerts or contributes to a negative impact in the area of human rights.
[1] Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law.
