See also the broader UNEP FI Environmental and Social Risk Briefing as well as these resources.
Utilities and Waste Management includes the following sub-sectors:
- Electricity transmission, distribution and supply
- Water supply
- Sewage treatment works
- Landfill facilities (hazardous and domestic)
- Waste incineration
- Scrap metal and mineral recovery
These industries are often highly regulated, although this should not be interpreted as a guarantee that human rights risks are addressed. Increasing privatisation of formerly state-owned utilities/service provision, including in emerging economies, is sometimes associated with bribery and corruption as private interests compete for contracts.
Electricity generation is covered by the Power Generation section of this tool. The construction of facilities for this industry is covered in the Infrastructure briefing. Additional reference to these briefings may be necessary to get a broad risk profile for a particular company.
Key human rights related risks include:
- Workforce health and safety during facilities/infrastructure management and maintenance. Potential for workers come into contact with life and health threatening materials
- Access to basic services for vulnerable/poor customers who may be unable to pay their bills. Access to water and heating is critical to their health and well-being
- Labour standards and community impact in the supply chain with particular focus on:
a. the sourcing of water treatment materials such as carbon
b. products common to the sector such as meters, piping, cables and PPE (personal protective equipment)
c. engineers and maintenance staff (may be migrant workers)
- Public health and safety issues resulting from inadequate sewage and waste management
- Public health and safety issues relating to power cables, sub-stations, reservoirs, and electro-magnetic fields
- Security arrangements around facilities
Relevant voluntary and trade initiatives include:
- Young Power in Social Action: an NGO working to improve the conditions in shipbreaking yards in Bangladesh to ensure that the rights of workers are respected and that shipbreaking is conducted in a safe, environmentally friendly way.
- Amnesty International: campaigns for the human rights of indigenous people, whose lands are often threatened utility and waste projects
There are links to these initiatives in the resources section.
WORKPLACE CONDITIONS
What does this cover?
Workplace conditions include factors such as working hours, wages, health and safety and disciplinary practices.
What are the main issues for the utilities and waste management sector?
Working hours
Working hours exceed the daily/monthly limits and overtime is not paid at a higher rate
Disciplinary practices
Workers are fined as a disciplinary practice. (eg if damage occurs to equipment)
Discrimination
Migrant workers receive less payment than local workers, are given unpopular shifts and longer hours, and do not have equal opportunities for promotion
Health and Safety
The utilities and waste management sector is required to maintain and manage facilities and infrastructure that are: transmitting high voltage electricity; using potentially dangerous equipment (eg: incinerators); and/or involving hazardous waste and chemicals. The sector also requires staff to visit private homes and business premises.
- Fatal and non-fatal incidents occurring due to faulty equipment and materials
- Fatal and non-fatal incidents which may be caused by lack of proper risk-management, procedures or adherence to procedures
- Fatal and non-fatal incidents which may have been prevented with proper training and/or PPE (personal protective equipment)
- Contraction of illness and disease among workers due to inadequate procedures, training or PPE
- Risk of discrimination, abuse, violence and/or threats from customers
CONTROLS AND MITIGANTS
- Policies and procedures in place to ensure the fair treatment of all workers
- Regular maintenance of sub-stations, cables, waste facilities and so on with adequate technology, guidance and equipment provided to all workers
- Written health and safety plan communicated to all workers in their own language and supported by robust governance procedures
- Written emergency preparedness/accident response plan to ensure safety of workers in the event of a serious incident
LABOUR RIGHTS AND COMMUNITY IMPACT
What does this cover?
This covers workers rights in the supply chain and the impact of key supplier facilities on local communities. It also covers the use of contracted and agency labour.
What are the main issues for the utilities and waste management sector?
Key Products and services
- Carbon is a critical and necessary product in the treatment of water Coal mines and carbon processing plants may employ child or migrant labour, displace local communities and/or demonstrate poor working conditions
- The sector is a key customer for suppliers of cabling, piping and meters. Meters in particular can contain components or be compiled in factories where working conditions are harmful, and/or that employ child labour
- The utilities sector is a large purchaser of PPE (personal protective equipment) and orders PPE, uniforms, and other products with company logos marked clearly on it. These items may be produced in factories which demonstrate labour relations issues eg: child labour, unfair pay, poor health and safety standards, poor treatment of migrant workers and/or forced overtime
- Sub-contractors or agencies and their workers may be subject to degrading/threatening treatment from disgruntled customers, and discrimination against workers from other cultures/races
- Risk of illegal migrant workforce recruited by sub-contractors
CONTROLS AND MITIGANTS
- Written ethical and environmental supplier screening policy covering labour relations issues and sustainable/ethical sourcing of materials. Suppliers should be aware of potential issues and have systems in place to protect workers and communities
- Written site security plans ensuring appropriate security measures are in place and specifying remedial measures to be taken in the event of a major incident eg provision of emergency water supply to local community if usual sources are contaminated
- Written policies and procedures in place to minimise risks to workers, alongside training programmes to ensure that workers are aware of potential risks to their personal safety
- Effective and documented procedures to ensure that workers are employed legally by sub-contractors and agencies
PUBLIC/COMMUNITY HEALTH AND SAFETY
What does this cover?
Sub-stations, reservoirs, landfill and re-cycling sites, incinerators and sewage plants may pose risks for the surrounding environment/communities and for individuals who may come into contact with them or the equipment used.
What are the main issues for the utilities and waste management sector?
- Risk (especially for children) of accident/death when insufficient security arrangements and warnings are provided around reservoirs, sub-stations, cables and incinerator facilities
- Landfill, re-cycling and ship-breaking sites may attract groups seeking scrap metals and minerals, food, household goods or waste material for their own use or to sell as a source of income. This may lead to several problems:
- contraction of illness and disease
- the subsequent spreading of any illness to the local community
- exposure to hazardous materials and substances
- security arrangements which don’t recognise community need and result in a loss of livelihood or access to basic resources
- Poor maintenance and repair of sewage systems may result in disease and illness
- Electro-magnetic radiation can be considered a risk to communities living near or close to power lines and sub-stations
- Emissions from incinerators and fumes from landfill sites may adversely affect local air quality.
- Lack of appropriate signage, education and security during maintenance work, eg excavation sites for underground piping/cables (particularly when the work takes place near public highways or amenities) can lead risk of injury and/or death
PROPERTY RIGHTS AND LAND ACQUISITION
What does this cover?
The sector acquires land for sub-stations, pylons, landfill and re-cycling sites, water treatment facilities, sewage plants and reservoirs. Communities may need to be relocated to make way for proposed developments/ projects. Developers’ requirements may include residential land, land used for agriculture, fisheries and/or land used for community activities.
Governments may take responsibility for conducting effective consultation with communities on relocation and ensuring that agreed compensation is paid. However, this is a significant risk area for companies involved with the project, as they may be publicly associated with any government poor practice (or perceived poor practice) in this respect. A lack of agreement by a relocated community may also result in future conflict, potentially leading to delays and additional costs.
Communities may also be split or separated from neighbouring communities by the development.
What are the main issues for the utilities and waste management sector?
- Lack of free, prior and informed consultation of local populations, and/or lack of process to explore this, can lead to arbitrary destruction of identity and livelihood
- Forced removal of indigenous groups from lands. This may be carried out by (or on behalf of) host governments which do not recognise indigenous groups or their rights
- Lack of, or unfair, compensation processes, procedures or arrangements in respect of land, property, crops and community property or cultural rights or loss of livelihood, or lack of adequate and appropriate alternative provision
- Damage to, or loss of, cultural heritage sites which form the basis of indigenous groups, and/or national, identity
CONTROLS AND MITIGANTS
- Community awareness and education plan as part of health and safety measures
- Engagement with community leaders to explore access to landfill and the related safety and security issues, and alternatives for local communities
- Policies and procedures around conservation and sustainable use of finite resources eg: water, energy, land, which take account of local community need for these resources now and in the future
- Written social assessment to evaluate a project's positive and adverse effects on indigenous peoples and examine alternatives where adverse impacts may be significant
- Written policies and procedures to ensure the free, prior and informed consultation of local and indigenous communities; ensuring that vulnerable groups are part of the consultation process. There should be a complaints mechanism available to local communities
- Written policy and procedures around the relocation of communities to allow for developments/projects, including measures around consultation, compensation and continuation of livelihoods
- Policies and procedures around conservation of cultural/historical/religious sites which form the basis of the identity of local and/or indigenous groups
CUSTOMERS: ACCESS TO BASIC SERVICES
What does this cover?
Electricity, water and waste management services have a direct impact on the living conditions and health of customers. Lack of access to these basic services may impact on human rights eg: the right to an adequate standard of living, the right to health, the right to water, and the right to enjoyment of property.
What are the main issues for the utilities and waste management sector?
- If electricity and water bills consume a disproportionate amount of household income, this may lead to debt, poverty, and/or reduction in consumption (which may threaten health and other areas of life)
- If electricity or water services are interrupted or cut-off, elderly, young, disabled or ill people are at particular risk
- In the case of flooding or other natural disasters, issues can include the onset of health problems/disease from overflowing sewerage or contaminated water supplies, and hardship caused by interrupted power supplies
- Ill health and communicable disease can arise when sewerage and waste management services are not provided. This is most likely to occur in poor areas eg informal settlements/camps
VANDALISM, TERRORISM AND SABOTAGE
What does this cover?
Basic infrastructure such as electricity pylons and substations may be targets for vandalism, terrorism or sabotage during construction or when operational. Water supplies may be at risk of being poisoned and contaminated.
What are the main issues for the utilities and waste management sector?
- Restrictions on local populations’ movement or access to facilities, as part of overall security for site
- Discrimination against some sectors of society due to government views on the potential for them to engage in terrorism or sabotage
- Catastrophic damage to the local community, including large scale injury, deaths and damage to community infrastructure and livelihoods in the event of an attack
CORRUPTION / BRIBERY
What does this cover?
The sector tends to be highly regulated or part-owned or fully-owned by the state. In some jurisdictions the relationship between private sector and state may be associated with significant levels of bribery and corruption. This may result in taxes and revenues being diverted away from social infrastructure development, impacting the realisation of human rights such as access to education and health.
What are the main issues for the utilities and waste management sector?
- Price may be set and controlled by a regulator, which may limit price sensitivity to the market and transparency around charges. There is potential for over-charging in what may be a monopoly market
- The development and operation of major utilities projects may potentially be subject to corrupt practice and bribery during the planning process
- Regulation may mean that utilities providers have a close relationship with government officials, which may potentially give rise to concerns about transparency of taxation, licensing and/or other payments
CONTROLS AND MITIGANTS
- Policies in place to identify and protect vulnerable customers
- Participation in government or community programmes which provide connection to basic services for poor and informal communities
- Compliance with local/national law is a minimum benchmark
- Application of consistent and effective management practices in relation to site security, and consultation with local communities
- Clear emergency plans in place to deal with the company’s role in large scale incidents
- Transparency about payments to governments, including licence payments, taxation and other payments
- Written anti-corruption policies, communicated to all employees, agents, and intermediaries
