VINCI is an engineering and construction group with two business segments: concessions, which mainly focuses on toll roads and airports, and contracting, split across activities related to construction, roads and energy.
| Engagement Objective - Social: Human rights |
Background
According to the International Labour Organisation (ILO)1, construction is one of the industries most likely to have forced labour practices. To give an example, in Qatar, large construction projects were initiated in 2010 after the country won the bid to host the 2022 FIFA World Cup. In 2014 the ILO filed a complaint concerning Qatar's non-observance of the 1930 Forced Labour Convention and the 1947 Labour Inspection Convention. As VINCI had been involved in the Qatari construction sector for many years, through Qatari Diar VINCI Construction (QDVC) − a joint venture with the real estate arm of Qatar’s sovereign wealth fund − it was therefore identified as one of the companies exposed to a high risk of complicity with regard to potential labour and human rights abuses.
Our engagement
In 2014, we wrote to the chair/CEO of VINCI to raise our concerns about the alleged violations of human rights and labour standards with regard to migrant workers in Qatar. We also had a number of meetings with the chair/CEO, the sustainability team, and the director of social innovation and human rights. As part of our engagement with VINCI, we asked the company to review its policies and improve its practices in these areas. We also highlighted the importance for the company to demonstrate leadership within the industry and to improve its communication about how it meets its duty to respect human rights in order to keep its social licence to operate.
Changes at the company
Case studies are shown to demonstrate engagement, EOS does not make any investment recommendations and the information is not an offer to buy or sell securities.
