2.10.5 Procuring Buildings and Infrastructure: Unlock the value of ESG

The building and infrastructure sectors are under significant scrutiny from regulators, investors, and the public to demonstrate their commitment to sustainability and social responsibility. This is driven by a growing awareness of the environmental impacts of construction activities, the need for greater social equity, and the demand for transparent governance practices. The aim of this project is to enhance the integration of Environmental, Social, and Governance (ESG) principles in building and infrastructure project procurement. By conducting a comprehensive national industry survey, investigating the selection processes of procurement models and strategies, and examining methodologies for creating and measuring social value, this research seeks to provide actionable insights and best practices that will support sustainable and socially responsible procurement decision-making for building and infrastructure projects in Australia. The outcomes of this project will equip industry stakeholders with the knowledge and tools necessary to make informed and responsible procurement decisions that align with the ESG principles.

Objectives

The specific objectives of this project are:

1. To conduct a national industry survey aiming at uncovering the current landscape of ESG adoption in procurement decision-making and gaining insights into the barriers, potential solutions to address the barriers including industry best practices, Government roles and emerging trends.
2. To investigate the selection processes of project delivery and procurement models and strategies with the objective of enhancing ESG impact.
3. To examine the approach and methodologies for creating and measuring social value in building and infrastructure procurement.

Industry Outcomes

This project expects to deliver the following outcomes for the industry:

1. This project uncovers the current landscape, trends and best practices of ESG adoption, offering industry actionable insights for integrating ESG considerations into procurement and benchmarking their efforts against peers.
2. By examining the selection process of project delivery and procurement models, it provides guidance on selecting strategies that enhance ESG impact and support informed decision-making.
3. The development of methodologies for creating and measuring social value will help establish frameworks to boost the social impact of projects, promoting community benefits and sustainable development.
4. Case studies will showcase successful ESG integration, offering practical examples and lessons for industry application.
5. Organisations adopting the findings can position themselves as ESG leaders, enhancing both their reputation and competitive advantage.