Financial crime and illegal labour in the construction industry lead to significant negative effects for society, in the form of a loss of tax income and difficulties monitoring whether human rights are respected at construction sites. In their role as a credit provider to construction companies and property companies, banks have the capacity to make a difference through the terms and conditions they apply to their lending.
In recognition of their social responsibilities,
Göran Stille, Head of Financing at
"By participating in this sector-wide initiative, we at
Each bank has long had its own processes aimed at preventing products and services from being exploited for financial crime. This initiative introduces new requirements on borrowers as part of the banks' credit processes. The banks have agreed on uniform guidelines in lending to construction companies and property companies. Among other things, these aim to ensure that borrowers have control over production and achieve greater oversight of the labour used throughout all supply chains, as well as guaranteeing that any sub-contractors comply with all applicable regulations.
"We welcome any and all initiatives that aim to level the playing field for all sector participants and advance the integrity of the construction sector. Construction companies have a zero tolerance approach to irregularities and fraud in the labour market. Sustainable social development and construction is dependent on solid co-operation between different players. This initiative by the banks is a key piece of the puzzle in this shared work," says Catharina Elmsäter-Svärd, CEO of the
For more information, please contact:
Anna Blomstergren, Head of Sustainable Financing at
Claes Thunblad, National Competition Co-ordinator,
For more information, please see www.handelsbanken.com
https://news.cision.com/handelsbanken/r/banking-sector-initiative-for-a-more-sustainable-construction-sector,c3324423
https://news.cision.com/handelsbanken/i/sustainability-goal-8-1200x628,c2899234
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