Tony Machin, CEO of TrustID, discusses how construction firms can help their subcontractors detect illegal workers and protect their reputations. Now that the deadline for workers to apply for the EU Settlement Scheme has officially passed, UK construction firms have been warned to expect a rise in the number of illegal documents being presented as evidence of right to work in the UK. Most large construction firms rely on subcontractors and, whilst they are not directly responsible for their Right to Work (RtW) checks, that doesn’t mean they have no cause for concern. Though constructors may not shoulder the financial burden of penalties, they might well suffer reputational damage and disruption if they are found to have illegal workers employed on their projects. In a competitive environment, your reputation can make or break a deal – especially as developers are becoming increasingly concerned about the ESG credentials of suppliers. For sensitive projects – such as public sector buildings – there is an even greater need to demonstrate compliance with illegal working checks. To mitigate the threat to their reputation, main contractors must therefore ensure that all staff accessing a site, including subcontractors, are robustly checked. However, monitoring this can be particularly challenging for project managers, if they are dealing with hundreds of staff at any one time or have a high turnover rate. Project managers also often need to get people on site quickly, and lengthy checks can cause delays. Processing RtW checks correctly can also be resource- and skills-intensive – and some subcontractors may be unwilling to shoulder the costs. Main contractors therefore need to be able to recommend a fast, reliable, and affordable way to support their subcontractors’ RtW checks. How to solve the problem UK construction specialists are increasingly keen to promote and support the highest levels of compliance among their supply chain and network of subcontractors. They recognise the risk that illegal working presents to both their business and to their supply chain, including the threat of modern slavery, as well as potential damage to their brand and reputation, which could exclude them from future opportunities, particularly in the public sector. One such way to drive compliance is by promoting the use of digital identity checks, and forward-thinking contractors are increasingly encouraging their strategic partners to deploy a reputable identity checking service. Such services support fast, compliant, straightforward Right to Work checks, confirm the authenticity of identity documents and build a higher level of protection against illegal working. A main contractor can then request to see proof of checks as sub-contracted workers arrive on site. What is the real risk? At TrustID, we keep a record of the number of fake documents submitted to our identity checking service. When we recently assessed the digital RtW checks made by one construction firm’s supply chain partners, we found that 11% of submissions would not have been accepted as evidence in a Home Office audit. Examples included submissions with ineligible or incomplete documentation, and even one fake British passport. At another major construction project, to refurbish a London shopping centre, all subcontractors were required to deploy TrustID digital identity checks to gain access to the site. In one year, we flagged 15 fake documents in the supply chain, which could have led to civil penalties of up to £300,000. The percentages of different document types identified almost mirrored the overall picture in construction (the most common being passport and ID cards) – adding supporting evidence to the effectiveness of the checks. How to choose a digital RtW service Look for a digital service that is cloud-based, so that you can access it online from any connected device. If your requirements are likely to vary from job to job, look for a RtW service that offers a pay-per-check basis, so that you don’t have to pay for more than you need. In terms of functionality, think about how you want receive documents to the digital service for verification. Some services enable employees to upload images of their identity documents themselves. Your service provider should then be able to quickly confirm document validity and provide an electronic report – sometimes within minutes. Look for a service that is backed by a SLA that meets your business needs. With the right provider, workers should be able to arrive on site the day after verification (or even the same day) with proof of Right to Work in the UK. Should your business promote digital RtW checks? Given the ongoing risk of identity fraud and potential tough penalties, there is a clear need for constructors to protect their sites from illegal workers, whether they are directly employed or operating through subcontractors. As digital checks are cost effective and quick to complete, they overcome the main objections that subcontractors may have to performing enhanced identity checks on staff. Indeed, many subcontractors introduce digital ID checks to meet compliance requirements for one project, then continue to run them voluntarily as they see the benefits. Because digital identity checks are proven to be reliable, they bring valued peace of mind. The answer is clear: if you want to protect your construction firm against the reputational loss, fraud risk, potential disruption to your site and significant fines that illegal documents can cause, digital identity and Right to Work checks are the foundation. Learn more about TrustID digital RtW check for the construction industry www.trustid.co.uk/construction

Calls for effective carbon pricing as critical to enable capital allocation in line with net zero On Finance Day at COP26, abrdn announced its target to reduce the carbon intensity of its assets by 50% by 2030 vs a 2019 baseline1. abrdn has developed a climate change strategy focused on Net Zero Directed Investing (NZDI). This means moving towards the goal of net zero in the real world – not just in its portfolios. abrdn will seek to achieve this goal through a set of actions, including rigorous research into net zero trajectories, developing net zero-directed investment solutions and active ownership to influence corporates and policy makers. The goal will be delivered via three pillars of action: Decarbonisation: abrdn will track and reduce the carbon intensity of its portfolios. That means continuing to incorporate carbon analysis into the investment process and supporting credible transition leaders and climate solutions. Our equities, credit and quants investments already have the majority of assets with a carbon intensity below benchmark and our Real Estate business has committed to aligning their assets to net zero 2050 pathways. Providing net zero solutions: abrdn will increase the proportion of assets flowing into net zero-directed investing solutions. Around 30% of AUM is currently managed in line with net zero 2050. abrdn will aim to increase this by continuing to develop net zero solutions across all asset classes, actively engaging with clients as well as transitioning its fund range to support net zero goals. Active ownership: abrdn will continue to vote and engage with its investee companies to drive change and transition real assets. The team will engage with the highest financed emitters across equity and credit holdings seeking transparency on progress against clear transition milestones assessed against relevant standards – such as the Climate Action 100+ net zero benchmark. abrdn will divest from companies where, after two years, it considers insufficient progress has been made against the transition milestones set, unless it’s not in line with the client mandate. abrdn recognises that sustainable change starts with its own operations. That’s why we are also announcing our own ambitious target of net zero in our operations by 2040. Stephen Bird, CEO of abrdn said: “At abrdn we are acutely aware of our obligation to support the drive towards net zero. That’s why I’m pleased we can announce these climate commitments today – both for the investments we manage and our own operations –  which build on those we made earlier in the year.” “But we must be very clear: simply moving our clients’ money out of high-carbon intensity stocks into greener options will not solve the world’s crisis. Decarbonising a portfolio is not the same as decarbonising an industry. To achieve that we need effective engagement with companies because more seismic change will come from backing credible transition firms on their path from high to low carbon intensity.” “And asset managers cannot operate in a vacuum. Bolder, collective action by governments is desperately needed. Effective incentives in the form of appropriate carbon pricing are absolutely critical to enable capital allocation in line with net zero and to create an investment environment which rewards companies and investors that go green. We also need a proper debate and action on the role of the tax system in the transition. Pricing carbon needs to be focused on changing behaviours, and ensuring a just transition, on a national and global scale.”   This new pledge builds on the commitments abrdn announced earlier this year. 1 Assets initially in scope are Equities, Credit, Active Quants, Real Estate and selected Multi-Asset strategies. More detail on our baseline and implementation approach will be published in a separate target setting paper. abrdn is committed to this decarbonisation path on the expectation that climate policy will strengthen globally and will review its commitments on a regular basis to reflect policy developments and client commitments.