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We often hear how Environmental , Social and Governance ( ESG ) is important for hitting net zero carbon goals , yet there ’ s more to the picture as it is also a critical business investment marker . Construction companies that can show they are ESG compliant often also demonstrate innovation and best-in-class quality . It ’ s a sign of resilient business for insurance providers , investors and financial institutions .
Recent data from PwC forecasts global ESG investments to surge to $ 33.9 trillion by 2026 , with three in five institutional investors reporting superior performance from ESGcompliant investments . For construction companies , this translates into a growing market for projects meeting ESG standards , unlocking significant scope for sustainable growth .
Put plainly , strong sustainability metrics make a project more marketable , with contractors standing to make significant returns as compliance with ESG criteria now doubles up as an early quality indicator . That ’ s not all , early adopters proving their ESG compliance are also more likely to prioritise other critical factors , such as building safety , which has become non-negotiable in European construction .
What ’ s holding us back ?
While there ’ s an opportunity for construction companies to gain from ESG , introducing practices requires significant upfront investments of time and money , a challenge in today ’ s climate , especially for smaller firms with limited resources . Some companies may also lack the knowledge to develop a strategy and implement protocol effectively , particularly where they don ’ t have enough guidance or standards to work from . This makes it difficult for businesses to know where to begin or how to measure performance . Resistance to change can be yet another challenge for those faced with uprooting established routines . It ’ s a lot to consider , so how can we simplify the process ?
Keeping up with the times
Realising this ambition requires a mindset shift to ensure sustainability is placed at the fore of plans and operations . For those overwhelmed by the prospect of ESG compliance , technology can be a saving grace .
Many companies are already using digital technologies like ‘ carbon tools ’ in their Environmental Impact Assessments to measure emissions from project delivery . We ’ re also likely to see more use of digital twins and scenario modelling to figure out the best green solutions and understand their impact on ESG results .
However , the full potential of digital technology is still yet to be realised . We ’ ve found only a third of construction professionals see digital tools as useful for managing ESG certifications and that IT solutions contribute to reducing material waste . This presents
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