Why sustainability and ESG matter in GCC construction

As the Gulf's construction sector accelerates toward a low-carbon future, understanding sustainability and ESG has become crucial for long-term growth. DEEPAK MAGAR, Director of Northstar Eco Consult*, explores how regional initiatives, innovative design, and responsible investment are shaping the next generation of buildings across the GCC.

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THE days of viewing sustainability as a mere “add-on” or regulatory hurdle are over. For the GCC construction industry, adapting to sustainable practices has become the single most vital factor for operational efficiency, market competitiveness, and future compliance. Given the region's unique challenges - extreme weather and limited water resources to ambitious national commitments like UAE Net Zero 2050 - the shift toward smarter, greener building is accelerating.

To fully appreciate this transformation, we must begin by establishing an understanding of the core concepts of Sustainability and Environmental, Social, and Governance (ESG).

In recent years, the words sustainability and ESG have been appearing everywhere - in business meetings, government policies, and even in community discussions. But many people still wonder: what is the difference between the two?

Sustainability means meeting present needs without compromising the ability of future generations to meet theirs. It balances environmental health, economic viability, and social equity often called the three pillars: planet, profit, and people. The core of sustainability is long-term thinking and responsible use of resources.

ESG stands for Environmental, Social, and Governance. It is a way to measure how a business impacts the planet, treats people, and runs its operations ethically.

SUSTAINABILITY VS ESG

Think of this as a road trip, where sustainability is the destination - how the world can thrive without harming the planet or limiting opportunities for future generations. It means clean air, healthy communities, strong economies, and a better quality of life for everyone. To reach this destination, we need a way to monitor our progress.That's where ESG comes in.