Constructing accountability

ESG compliance in the 2025 building sector

- WORDS CHRIS KNIERIM PHOTOGRAPHY GETTY IMAGES

As 2025 unfolds, the construction industry, traditionally viewed as a significant contributor to environmental degradation, is redefining itself with an unwavering commitment to Environmental, Social and Governance (ESG) principles.

This shift is not merely a trend, but a vital response to the global call for sustainability and social responsibility. ESG is now at the heart of industry operations, signifying a profound understanding that the built environment is intertwined with the health of our planet and society.

The “E” in ESG stands at the forefront in the construction sector, with a direct link to environmental impacts through material use, land and energy. The urgent need to reduce carbon footprints has led to the adoption of green building standards and the pursuit of innovations such as energy-efficient designs and renewable energy integration. The industry has also embraced sustainable materials such as bamboo, recycled steel and green concrete, bolstering its environmental credentials. Furthermore, life cycle assessments and embodied carbon analyses are becoming standard practice, enabling companies to quantify environmental impacts from design through demolition.