4. Depth of the Value Chain

The company states what significance aspects of sustainability have for added value and how deep in the value chain the sustainability criteria are verified.

The product life cycle of a construction can be divided into
1) Provision of raw materials
2) Pre-production
3) Transport/Distribution
4) Construction process
5) Use
6) Revitalisation/recycling or disposal/demolition.

In most cases, our field of activity is the construction process, which is why we act as a link between the subcontractors/suppliers and the operators/clients of our buildings.

Each project is unique with individual conditions. The possibilities of influencing sustainable construction diminish as the process progresses. The greatest leverage effect is created by comprehensive project life cycle management. Whenever we accompany the entire cycle, such as public-private partnership projects, we manage all the resulting or potential effects.

The client usually decides on the construction procedure and thus has a decisive influence on the environmental impact. If HOCHTIEF is to take on the role of construction contractor, we examine the possibility of positively influencing the effects on the environment with special proposals for construction work during the bidding phase. With "PreFair" we offer a suitable business model.

In addition, fair working conditions on our construction sites, occupational safety and health protection play an overriding role. Overall, we consider the interaction of economy, ecology and social issues in all project and decision-making phases. This is particularly evident in our certified, sustainably implemented projects - HOCHTIEF builds green buildings and infrastructure projects.

HOCHTIEF also expects its clients, business partners and suppliers to comply with Group standards, and demands this in a binding manner. The Code of Conduct for contractors summarizes the rules for responsible conduct. The HOCHTIEF Code of Conduct and the HOCHTIEF Code of Conduct for contractors can be found here.

A key success factor for HOCHTIEF is the selection of the "right" partners in terms of quality, deadlines and costs. To this end, all divisions pursue uniform purchasing targets.

HOCHTIEF minimizes procurement risks through various targeted measures coordinated in purchasing. Possible risks include:
In 2018, HOCHTIEF took part in the CDP climate ranking's supplier engagement rating (result: A-).

To further strengthen sustainability and transparency in our supply chain, we initiated a project with the rating company EcoVadis in the year under review: EcoVadis analysts will evaluate our strategic partners with regard to various sustainability criteria. The focus is on environmental protection, labor and human rights, fair business practices and the supply chain.

If risks are identified, we work with the subcontractor or supplier concerned to develop specific measures (referred to internally as “corrective action plans”). In this way, we aim to further enhance sustainability and transparency in our supply chain.

HOCHTIEF wants to promote the business locations of its construction projects. We prefer to work with local subcontractors and suppliers located in the vicinity of our project sites. This secures jobs and sustainably strengthens economic development in the regions in which we operate.

We actively participate in the “Wirtschaft Macht Klimaschutz” dialog forum launched by Germany’s Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety. This initiative supports the development of joint strategies and implementation measures in industry. HOCHTIEF is involved in a working group on climate-friendly supply chains.