ESG: a driver of growth in construction?

According to a recent study by PlanRadar[1], a digital platform for documentation, communication and reporting of construction projects, ESG (Environment, Social and Governance) standards do not appear to be an immediate growth driver for professionals in the construction and real estate sector worldwide.

However, France stands out with more than a third of professionals (38,10%) enthusiastic about ESG.

France and Italy, leaders in ESG integration

For nearly one in two companies (44%) in the construction and real estate sector, the integration of ESG criteria is not seen as an immediate driver of growth. Only a quarter consider it a lever for development. This perception varies widely depending on the country. France and Italy are at the forefront of the class, while the United Kingdom and Slovenia express their skepticism.

Switzerland stands out, with no respondents convinced by the impact of ESG. These figures suggest that the adoption of ESG practices is still in the exploration and economic evaluation phase.

ESG is taking shape with digitalization

For the small number of companies that recognize the economic effectiveness of ESG, digitalization plays a catalytic role. For example, 60% of construction and real estate professionals say that digital tools significantly reduce paper consumption. However, when surveyed users of digital platforms are asked about this, the figure rises to 90%.

Furthermore, only 34% of industry professionals believe that digital solutions help reduce material waste. Digital platform users, on the other hand, are more optimistic, with 60% reporting substantial gains from resource and material optimization.

Economic interest in ESG practices also varies depending on the respondents' activities. For specialized contractors (78,31%) and developers/owners (76,56%), ESG does not appear to be a definite growth driver. Conversely, it is a real growth driver claimed by asset, property, and premises managers (42,11%).

For Álvaro Vega, Regional Manager France, Spain, Italy and Latin America at PlanRadar: "To fully understand the usefulness and economic impact of ESG, construction and real estate professionals must fully embrace digital platforms. ESG will become a performance lever that digital technology will make accessible and quantifiable."

[1] Global Housebuilders' Survey 2024, carried out among 669 companies in 17 countries.

Illustrative image of the article via Depositphotos.com.