Half of Engineering and Construction companies believe the implementation of ESG will give them a competitive advantage, finds global survey

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30th July 2023 12:40 - Construction

Half of Engineering and Construction companies believe that the implementation of ESG will give them a competitive advantage: A survey of E&C companies has found that 50% believe the implementation of ESG into capital projects and programs would give them a competitive advantage, while the same proportion said it would offer reputational improvement.

The survey also found that 45% of respondents believe implementing ESG would benefit their organisation by bringing about more inclusive and safe job sites.

Other benefits cited included enhanced project success (35%), optimised resource consumption (35%), increased reliability (31%), the opportunity to operationalise ESG commitments (31%) and explore viable sustainability options (27%) as well as enhanced capital access (26%) and enhanced circular economy (23%).

The 2023 Global Construction Survey ‘Familiar challenges – new approaches’ by KPMG polled Engineering and Construction leaders at KPMG member firms around the world asking for views across a wide range of areas such as supply chain, ESG, project performance and technology. It revealed that despite continuing challenges such as rising inflation and supply chain disruptions, the industry is showing cautious optimism for the coming months, with optimism due to a range of factors including ESG demands driving renewable energy and circular economy projects, a significant post-pandemic pipeline and government infrastructure funding in some countries.

The survey was conducted as Engineering and Construction companies are facing growing pressure to become more sustainable, in terms of the construction processes they use as well as the buildings and infrastructure they create. The latest 2023 survey shows that attitudes towards ESG have shifted over the last 15 years somewhat.

In 2008, 56% of organisations said that one of the key drivers for sustainability within their sector was to position themselves as an innovative or environmentally aware company. Three in 10 also said that a top driver for them was 'to increase business opportunities and competitiveness' (29%). Fast-forward 15 years and the survey revealed a ‘strong commitment' for organisations to be more sustainable, with 54% saying they "fully envision the benefits of ESG and are aggressively pursuing maturity and improvement". Thirty-seven percent said they see ‘some’ benefit in ESG and are using a targeted approach, while 6% said they are sceptical regarding ESG and consider it to be similar to previous sustainability trends. A further 6% said they are not aligned with ESG and are only pursuing as required.

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