The importance of ESG
This blog is part of our new weekly ESG blog series, this blog will explore the importance of ESG and why companies cannot neglect ESG.
Why can’t you ignore ESG
Environmental Social Governance (ESG) is now cemented as a mainstream concept which is becoming embedded within financial systems, because of this companies can no longer neglect their ESG. This is due to companies wanting to work with other companies that embrace ESG principles. Thus, ESG is intrinsically linked to the supply chain, causing companies to rethink their supply chains and partners.
ESG is highly relevant for the construction industry as 39% of global carbon emissions are related to construction. Therefore, the construction industry is set to be significantly impacted by the emergence of ESG, companies are going to have to demonstrate robust ESG strategies, where companies can accurately report their carbon emissions and have a strategy for reduction. Additionally, companies based in London need to pay extra attention to ESG as London has set a target of being net-zero by 2030, meaning that companies operating in London need to start addressing and producing ESG and net-zero strategies now!
Finally, the more a company embraces ESG the more it stands to gain, through an increase in work and positive press. This is due to ESG being market-led rather than policy-driven, meaning that companies are now rewarded for being more sustainable and will benefit from championing ESG, gaining more investment and having more tendering opportunities because ESG is so connected to the supply chain. Companies will need to develop bespoke ESG strategies to show a drop in carbon emission year on year as well as embrace sustainable construction methods.
If you would like to learn more about ESG please click the link below.