Will Digital Innovation Drive ESG Standards in Construction?
Mokshita P.
10x Industry

Will Digital Innovation Drive ESG Standards in Construction?

Significant benefits reported by PlanRadar customers highlight untapped potential in construction industry's adoption of digital platforms for ESG compliance.

PlanRadar, a leading digital documentation and communication platform in the construction, facility management, and real estate sectors, recently conducted an analysis on how digital platforms impact ESG due diligence. Their main finding is pretty interesting: only about one-third of construction industry professionals think digital tools are useful for managing ESG certifications. However, PlanRadar’s customers have reported significant benefits from using these digital tools, showing a big opportunity that the industry hasn't fully tapped into yet.

To get environmental certification, companies need to adopt energy-efficient practices, cut emissions, use natural resources efficiently, reduce waste, and protect natural habitats. The survey by PlanRadar highlights a gap in how digital tools are perceived in helping achieve these goals. For instance:

  • Only 60 percent of industry professionals acknowledge that digital tools help reduce paper use. Among PlanRadar's customers, though, this recognition jumps to 90 percent.

  • Similarly, only 34 percent of professionals think these IT solutions help reduce material waste, while 60 percent of PlanRadar's customers report significant benefits in minimizing rework and conserving resources through digital platforms.

PwC has also provided some relevant data, forecasting ESG investments to reach US$33.9 trillion by 2026. Additionally, three out of five institutional investors believe ESG-compliant investments perform better than non-ESG ones. For construction companies, this means there’s a growing market for projects that meet ESG standards, which can lead to sustainable growth.

Digital platforms like PlanRadar make it easier to comply with ESG standards by integrating documentation, communication, and reporting into construction, real estate, and facility management operations. Some key features of PlanRadar include:

  • ESG Data Collection: Detailed logging of each build stage with geo-tagged photographic evidence, useful for ESG and technical due diligence.

  • Automated Reporting: Converting data into comprehensive reports for audits, supplier management, client communication, and documentation.

  • Waste and Rework Reduction: Efficient documentation and tracking to minimize rework, saving both time and resources.

  • Risk Reduction: Quick assessment of risks and costs, aiding informed decision-making for sustainable and energy-efficient practices.

  • Safety and Quality Control: Implementing inspections, QR codes, and NFC tags to enhance job site safety and quality, which is attractive to investors.

Ibrahim Imam, the CEO & Co-Founder of PlanRadar, commented on these findings. He emphasized that contrary to the industry's general perception, digital platforms actually offer significant benefits for achieving ESG compliance. He stated, “Our digital platform is designed to be user-friendly, helping teams log and record every stage of the build. This ensures that ESG and technical due diligence are meticulously followed. With high demand and substantial return on investment (ROI), construction companies have a clear opportunity: align their practices and projects with ESG criteria to gain a competitive edge.”