Contract structures for environmentally sustainable development of enterprises in the investment and construction sector

Abstract

Striving to create a business environment that forms socially responsible business functioning is especially important in the spheres of activity related to satisfaction of basic needs in housing, work, medicine, recreation, etc. Investment and construction activities carried out by various contractors are characterized by a high level of economic, social and environmental risks. Their neutralization in the format of practical implementation of ESG principles for the implementation of real estate creation and management projects is primarily related to the initial phases of the project and taking into account socio-environmental requirements in contracts for the performance of works, supplies, financing, equity participation, provision of services, etc. Contracts that take into account the requirements of sustainable development in practice form a family of “sustainable contracts”. They are distinguished by the unity of economic, social and environmental requirements. The latter reflect the norms of national regulation and are aimed at creating a legal environment of corporate responsibility of the construction business for sustainable development. Based on international practice, the authors proposed the structure of the Concept of a “sustainable contract” in construction. It covered both the system of sustainable development standards and the need to develop and harmonize the Code of Sustainable Corporate Governance in Construction. The organization of activities in this direction is seen in the interconnected joint aspiration of sectoral and territorial governing bodies, corporate and public organizations, scientific and educational institutions to standardize investment and construction activities, develop standard “sustainable contracts”, use out-of-court dispute resolution methods in terms of fulfilling obligations to implement ESG principles, as well as the adoption of sectorial code of corporate construction management.

Keywords

• sustainable development
• sustainable development standards
• investment and construction business
• corporate governance code
• organizational activity tracks
• coordination center