The rise of Environmental, Social and Governance (“ESG”) goals, standards, and criteria continues to transform the construction industry. This article in International Construction Law Review by Dr Armando Castro and Dr Mohamad El Daouk explores the adoption and management of ESG in the construction sector, as well as its implications for sector members and their understanding of it. Key UK legislation that should be considered when managing ESG are also covered in this article.
The conclusion reached is that although the legal framework for ESG is evolving, there are increasing risks of ESG-related litigation within the UK construction sector. Specifically, ESG failures could trigger contractual disputes, director liability, and regulatory enforcement against greenwashing. Therefore, construction professionals need to be aware of legal developments and have a vital role to play in this changing landscape. A future article will provide a comparative analysis of ESG.
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