What is ESG and how will it impact the world of construction?

With the implementation of ESG strategy sweeping the construction industry, this then begs the question: what exactly is ESG?

ESG is an acronym that stands for environmental, social, and governance. A collection of criteria used to assess a company's concern for social and environmental issues. It is gradually becoming the gold standard for determining if a company is operating responsibly and ethically. Tackling these challenges is becoming a higher priority in terms of a company's behaviour and culture. ESG has become a significantly more important and pressing issue for businesses globally.



Companies' interactions with the environment are measured using environmental standards. This encompasses topics like carbon emissions, recycling, and the use of plastic. Companies across the world are becoming more aware of the need to minimise carbon emissions. Many businesses are pledging to decarbonize their operations and decouple growth from emissions. Carbon footprint, pollution, waste disposal, resource management, efficiency, sustainability practises, and future environmental goals are among the topics covered in reporting.


The term "social" refers to how a company interacts with and impacts its employees, customers, suppliers, and communities. Supporting your employees' well-being is important because the workplace is a hotspot for social interactions and can play a significant role in creating relationships among your co-workers. It's vital to establish a welcoming and supportive work environment for your team, as this helps to foster a safe social environment for your employees, and combats feelings of isolation.

Corporate Governance

These are the procedures and values that your company has built in order to be held accountable and make sound decisions. Corporate governance refers to the process through which businesses are led and governed. Their boards of directors oversee their company governance, and the shareholders role is to choose directors and auditors, as well as to ensure that an appropriate governance framework is in place.

What impacts has ESG made in the world of construction?

The built environment accounts for 30% of global greenhouse gas emissions and 40% of energy consumption, while construction consumes 32% of the world's natural resources. It is apparent that the construction sector has a role to play in the worldwide endeavour to decrease emissions and mitigate climate change on these grounds. [1]

The widespread implementation of ESG over the past few years has created a positive environmental impact. Regarding the human factor, more companies are keeping mindful of their employees’ mental health and wellbeing by providing mental health specialists in the workplace (or access to them) and promoting charities dedicated to mental health. For example, Ambit’s support of The Lighthouse Construction Industry Charity and their ‘Help Inside the Hard Hat’ Campaign (a charity dedicated to providing emotional, physical, and financial support to construction workers in the UK).

As time goes on and the implementation of ESG strategies becomes more common throughout the construction industry, we hope to see more responsible sourcing of core construction materials such as steel, concrete and timber, and a reduction in our emissions of greenhouse gasses and use of natural resources, and an overall happier, healthier workforce.

Visit our ESG page to find out more about what we are doing to make a difference here.


[1] https://www.marshmclennan.com/insights/publications/2021/april-/exploring-the-impact-of-esg-on-contractors.html