ESG investments on the rise: new opportunities for construction

PlanRadar, a leading platform for digital documentation, communication and reporting in the construction, facility management and real estate sectors, delivers the results of its analysis on the role digital platforms play in compliance with the criteria ESG.

According to the study, only a third of construction industry professionals believe that digital tools are useful for managing ESG certification[1]. However, PlanRadar users attest to significant gains by using digital tools for this purpose. There therefore remains an opportunity to seize for players in the sector.

To obtain environmental certification, companies must implement an energy efficiency policy, reduce their emissions, optimize the use of natural resources, reduce waste production, while preserving natural habitats. The study reveals the perception gap in the use of digital tools to achieve this environmental compliance:

Only 60%[1] of professionals in the sector say that digital tools make it possible to reduce paper consumption. However, when PlanRadar users are asked about this, this figure rises to 90%[2].
In addition, only 34%[1] of professionals in the sector believe that digital solutions help reduce the production of material waste. On the other hand, PlanRadar customers are more optimistic since 60%[2] of them report substantial gains resulting from the reduction in rework work and the optimization of resources and materials thanks to the use of digital platforms.

In France, the trend is also towards scepticism, with only 53%[1] of professionals perceiving a positive impact of digital tools on paper consumption (below the overall average). Note, however, that 44%[1] of professionals recognize a moderate impact of digital platforms on this point. On the subject of waste reduction, France is once again aligned with the global average, with 35%[1] of respondents attributing a positive influence to digital platforms.

A recent study unveiled by PwC predicts that ESG investments will reach 33,9 billion dollars by 2026 (around 31.600 billion euros). Additionally, three in five institutional investors report superior performance for ESG-compliant investments, compared to their non-ESG counterparts. For construction companies, this means that projects meeting ESG standards are growing and thus open up significant prospects for growth and sustainable development.

Digital platforms, like PlanRadar, simplify ESG compliance through seamless integration of ESG practices into documentation, communication and reporting for construction, real estate and facility management operations. To make a difference, the main functionalities of these platforms must ensure:

ESG data collection: a detailed logbook of each stage of the construction site with geolocated photographic evidence for ESG and technical compliance.
Automated reporting: data converted into comprehensive, readable reports for audits, supplier management, customer communication and documentation.
Reduced waste and rework: through optimized documentation and tracking to minimize rework, saving time and resources.
Risk reduction: rapid assessment of risks and costs, facilitating informed decision-making for sustainable and energy-saving practices.
Security and quality control: implementation of inspections, QR codes and NFC labels to improve the security and quality of construction sites, reassuring for investors.

For Álvaro Vega, Regional Manager France, Spain, Italy and Latin America at PlanRadar: “Contrary to industry perceptions, digital platforms offer real benefits for ESG compliance, as our market and customer research shows. The path to compliance doesn’t have to be complex. Our digital platform, developed to provide an enjoyable experience, gives teams the ability to log and record every stage of construction, with evidence that ESG criteria and necessary technical checks have been meticulously respected. With high demand and a significant return on investment, the opportunity for construction companies is clear: aligning practices and projects with ESG criteria will allow them to gain a competitive advantage. »

[1] PlanRadar survey of professionals in the sector (1.355 professionals in the construction and real estate sector in 19 countries, August 2023).

[2] PlanRadar customer survey (2.471 PlanRadar users from 20 countries, February 2023)