It’s not an exaggeration to say Environmental, Social and Governance (ESG) is driving a complete reframe of how we conceptualize value. ESG is a new way to think. Success is no longer simply about financials. It’s about how a company performs as a steward of nature, how it manages risks and controls costs, how it attracts and retains skilled talent, and how it manages relationships with employees, suppliers, customers, and the communities where it operates.
A Heavy Footprint
Globally, the construction industry is responsible for 39% of carbon emissions and uses approximately 32% of the world’s natural resources. On these grounds, it is clear that the industry has a role to play in the global movement to reduce its environmental impact.
While the construction industry has implemented programs reflecting ESG in its repertoire for years, new practices, programs and metrics are emerging – all of which can lead to greater competitive advantage, “best-in-class” quality, and stronger economic growth.
As David Kelly, Senior Management ESG Consultant, points out in a recent article on Marsh Mclennan, “Strong overall ESG performance will require construction businesses to implement policies and strategies that account for all of the environmental, social, and governance aspects of their operations. This will directly affect everything from supply chain management and the sourcing of materials and products to procurement strategies and ethical labor standards.”
Driving the Next Wave of Transformation
The reality is that ESGs are becoming a key driver for companies to accelerate their adoption of technology, so that they can plan, track and apply the appropriate levels of governance (financial and otherwise) on their projects to meet ESG standards.
Erin Roberts notes his recent EY.com article, “Providing investors, regulators and stakeholders with the level of detail they require around ESG has become a significant but important undertaking for all companies, and increasingly a part of the CFO agenda.”
As the construction industry adapts to the complex ESG landscape, capturing ESG data from construction activities is becoming increasingly necessary in today’s world. More than that, greater levels of transparency and consistent reporting will be required to maintain this progress – and technology solutions like 4castplus can help from an environmental, governance and safety aspect.
Innovation in Action
4castplus provides a scalable, intuitive solution that cannot only ensure financial governance through project controls; it also provides robust tools for materials management and ethical sourcing; along with providing detailed tracking of resources, costs, changes, incidents, safety, progress etc. All together 4castplus helps to reduce waste; uphold industry compliance; and ensure careful oversight of activities, subcontractors, and resources.