by Kailey Sutton and Annik Forristal and Srinidhi Akkur – McMillan LLP

As with many other sectors, environmental, social and governance (“ESG”) considerations are becoming imperative to the construction and development industry, and this focus on various aspects of health and sustainability has only been exacerbated by the COVID-19 pandemic and major climate events.

Recent focus on companies’ ESG data and investments in sustainability results from increased social and environmental consciousness in consumers, investors and other stakeholders.  Such metrics cannot be ignored by industries dealing directly with the built- and lived-environment.

While the construction and development industry has had programs reflecting some of these concepts in its repertoire for years, new practices, programs and metrics are emerging – particularly in light of the global impacts of climate change and the ongoing pandemic. The use and implementation of ESG initiatives is expected to increase as governments and stakeholders become more focused on reducing emissions, improving project sustainability and providing greater investor stability. It is thus becoming a necessity for industry players to have policies and strategies in place to address ESG.

There are a variety of options available to owners and others in the construction and development industry looking to implement ESG strategies for their projects. The approach best suited, however, will depend on the goals of the business, the project nature and scope, the ESG metrics sought to be applied and how they are measured and implemented.

This bulletin summarizes some of the more prominent existing ESG initiatives and trends in Canada that industry players should be aware of as they look to develop their own ESG strategies.

Keep reading this bulletin on McMillan.ca