What Quantitative Indicators Do Construction Companies Use to Manage ESG? A Case Study in South Korea

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Abstract

The purpose of this study is to investigate the quantitative indicators that Korean construction companies maintain in relation to environment, social, and governance (ESG). As a fundamental industry with a significant impact on the national labor market and environment, the application of ESG in the construction industry is crucial for the nationwide implementation of ESG. However, due to the high accident rates and greenhouse gas emissions in the construction industry, there are many challenges in implementing ESG, leading to a slow adoption of ESG practices within the construction industry. To assess the current state of ESG management in the construction industry, this study reviewed the ESG reports of nine major construction companies in South Korea published over the past decade and extracted commonly used quantitative indicators. Along with identifying these indicators, this study presents their trends over time. This study found a total of 28 common indicators: 10 in the environmental (E) category, 13 in the social (S) category, and 5 in the governance (G) category. From the trend analysis, this study found that construction companies publishing annual ESG reports in South Korea have improved their ESG performance over time. These findings can make three contributions. First, the indicators identified in this study can help small and medium-sized enterprises (SMEs), which constitute the majority in the construction industry, when formulating strategies for ESG implementation. Second, the trend analysis will be beneficial for diagnosing the current status of ESG performance in the construction industry and establishing future strategies for enhancing ESG implementations. In addition, the results of this study can be useful for establishing future research topics. For example, by utilizing the ESG indicators identified in this study, further research could investigate the impact of ESG on a construction company’s finances.

Original languageEnglish
Title of host publicationAdvances in Information Technology in Civil and Building Engineering - Proceedings of ICCCBE 2024 - Volume 1
Subtitle of host publicationModeling and Scheduling
EditorsAdel Francis, Edmond Miresco, Silvio Melhado
PublisherSpringer Science and Business Media Deutschland GmbH
Pages769-781
Number of pages13
ISBN (Print)9783031842078
DOIs
StatePublished - 2025
Event20th International Conference on Computing in Civil and Building Engineering, ICCCBE 2024 - Montreal, Canada
Duration: 25 Aug 202428 Aug 2024

Publication series

NameLecture Notes in Civil Engineering
Volume628 LNCE
ISSN (Print)2366-2557
ISSN (Electronic)2366-2565

Conference

Conference20th International Conference on Computing in Civil and Building Engineering, ICCCBE 2024
Country/TerritoryCanada
CityMontreal
Period25/08/2428/08/24

Keywords

  • ESG
  • ESG Indicators
  • ESG Trend

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