Can more sales be achieved by being ESG Compliant?

06 Jul 2021 CW Team

The construction sector has a substantial impact on most of the industries across the globe, especially on account of the industry having relatively high exposure to environmental impacts, social risks and governance issues (ESG).

Important ESG metrics for construction industry are primarily illustrated below but not limited to:

Land use and ecological impact

Workforce health and safety and thereafter of the end-user in the construction life-cycle

Design for resource efficiency

Community impact of the new construction

Climate change adaptation

The Real Estate (Regulation and Development) Act, 2016 (RERA) has brought a lot of structure in the construction industry across the country, thus making it more organised for fairness and transparency for the end-customer. It is a commercial framework, which has significantly improved the governance quotient of the real estate projects.

An important National Green Tribunal Order of December 2017 had stayed the Government’s December 2016 notification exempting construction projects having built-up area of up to 1,50,000 sq m from mandatory environmental approval. On this backdrop, the industry needs to take cues from global ESG principles and make their projects more attractive by reaping the fruits of a sustainable building and being compliant to laws in India.

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