ESG has become a hot topic for business. It is often discussed in the context of financial institutions and lenders.
However, Construction is one of the sectors most exposed to ESG considerations. Decarbonisation is a particular concern, as commonly used construction materials account for a significant percentage of carbon emissions.
The trend of Government action is firmly towards higher ESG standards and it has also become a primary concern of funders, investors and shareholders. They are imposing requirements related to ESG criteria as part of investment decision-making and it is becoming an increasing factor in both public and private sector procurement.
Businesses need not only to get their own houses in order but also to have an eye to the wider supply chain. Businesses with inadequate data on their suppliers are at particular risk.
The key to any demonstration of ESG performance is the credibility of a company’s data. Robust, credible data is key to demonstrating performance and avoiding claims of greenwashing. This requires transparency about data sources and the methods used for collecting data.