The COVID-19 epidemic heightened public awareness of climate-related issues, such as the need to create a cleaner, greener construction industry. Construction companies around the world are facing rapidly changing problems, including growing scrutiny of their environmental, social, and governance (ESG) policies.
As organizations seek product and process innovation to create a more sustainable sector and “build better,” several strategic modifications to business models are being implemented.
The built environment accounts for 30% of global greenhouse gas emissions each year. Construction consumes over 32% of all-natural resources on the planet. Although the industry is a major contributor to climate change, it also has the potential to make a good difference. Over the last year, there has been a considerable increase in public interest in sustainable investment. In the run-up to the proposed mandatory climate-related disclosures in 2025, the United Kingdom government became the first to present a roadmap to all private and publicly traded corporations.
Contractors are generally responsible for project risk, including insurance procurement, and this role is sometimes delegated to subcontractors. Traditional contract models are changing, which necessitates deeper collaboration between all parties. Companies should support the creation of contract structures that allow for greater risk sharing between parties as they seek ways to include process or product innovation in projects.