Validation of Challenges for Implementing ESG in the Construction Industry Considering the Context of an Emerging Economy Country

Abstract

In pursuit of profit maximization through practices that promote sustainable development, companies increasingly use environmental, social, and governance (ESG) criteria to guide investment. However, there are challenges in implementing these practices across diverse sectors, such as the construction industry, especially in emerging countries with limited related studies. This study validated the challenges of implementing ESG in the construction industry in an emerging country like Brazil, considering its relationship with the United Nations Sustainable Development Goals (SDGs). A literature review identified challenges associated with ESG implementation, followed by the development of a questionnaire based on these challenges. Subsequently, the questionnaire was administered to professionals in the construction industry and validated using the Lawshe method. Twenty-seven challenges were identified, of which twelve were validated, including the lack of standardized performance indicators, regulatory guidelines associated with ESG practices, organizational resistance, and insufficient transparency in non-financial indicators. This study provides guidance for overcoming challenges in the successful adoption of ESG in the construction industry. It also identifies the most-impacted SDGs and lays the foundation for future actions promoting sustainable development in the construction industry in emerging countries.

Keywords

• ESG (environmental, social, and governance)
• UN SDGs (United Nations Sustainable Development Goals)
• construction industry
• emerging economy
• Lawshe method