Mechanism for increasing the ESG rating in construction

Every year, investors and experts are increasingly paying attention to ESG ratings when evaluating the company’s activities due to the increased interest of consumers in ecology and respect for nature. The growth of the company’s shares is ensured both by profit growth and by attracting investments, for which it is necessary to have high-quality packaged ESG projects.

The most used ratings include Sustainalytics, MSCI and S&P Global CSA, which have a large number of criteria where green construction is taken into account.


At the moment, there are three main mechanisms for increasing the ESG rating of construction and development companies:


   1. Green certification of buildings, which includes a large number of environmental, social and economic criteria that make it possible to make a building better and directly affect the ESG rating of companies using these buildings or engaged in their construction.


What criteria can be applied in these systems? For example, this is a reduction in greenhouse gas emissions. Green buildings are more energy efficient because they produce less greenhouse gases when consuming energy. Buildings save water, they build infrastructure for the separate collection of waste and their subsequent processing, and also use building materials with a low carbon footprint. A green infrastructure for the management of water resources and their effluents is being built. Renewable energy sources, such as solar or wind power plants, can be used in buildings.


During the construction of buildings, a green procurement policy and materials with high environmental characteristics are applied. It is recommended to conduct a Building Life Cycle Analysis (LCA) in order to understand your environmental footprint at all stages of the life cycle. In addition, green certification and investments in green buildings are a separate criterion of the evaluation system.


International certification of buildings and territories


   2. Climate risk and greenhouse gas management. Calculation, optimization and compensation of greenhouse gas emissions are necessary for the sustainable development of the company in the international market.


As a rule, the calculation is carried out according to the first and second coverage (Scope 1 and 2). This is the consumption of energy and fuel, as well as the use of various substances that produce greenhouse gas emissions (refrigerants, mineral fertilizers). It is important to study technological processes that can affect greenhouse gas emissions, as well as keep records of them. This is necessary in order to optimize emissions and continue to expand coverage.


After the work on the first and second coverage is carried out, it is necessary to introduce a third coverage (Scope 3), which takes into account the life cycle of industrial, office, construction facilities. All supply chains of the company’s services and materials, as well as products and services produced by the company, are taken into account.

It analyzes how a company can influence a wider range of participants, for example, suppliers, contractors, employees. You can request a service with a reduced greenhouse footprint from them, buy green energy.


Within the company, you can regulate working conditions, for example, try to stimulate the transfer of employees to alternative or public transport. It is necessary to ensure the production of eco-friendly products with the lowest carbon footprint throughout the entire life cycle, take into account how the products are delivered to the customer, storage conditions in warehouses and whether the customer can extend the life cycle of their product.

Calculation of the Carbon Footprint

 3. Training in the field of green construction, climate risk management-ESG. Training is very important and we recommend starting the implementation of ESG culture in a company with training.


Education in the field of sustainable development is important for the company’s employees, because thanks to this, companies acquire competent and motivated personnel who are able to support sustainable initiatives with an understanding of not only economic, but also environmental and social factors.


During the training period, it is important to reveal the problems faced by business, the environment and people. This is necessary so that people can influence their daily routine and offer their solutions to the tasks facing the organization. They will be more competent, aware. They may be more motivated to work on these issues and help the company develop.


Based on our experience, we can conclude that the more knowledgeable a company is in the field of ecology, social aspects and business, the higher its competence, since they have fewer risks and make the necessary strategic decisions in a more timely manner.

In the future, when employees are trained, it is easier to transform the organization, introduce innovative projects and improve them, because company managers do not need to try to convince people. On the contrary, they receive energy and inspiration in order to solve these problems.


“ESG course in Development”