In the ever-evolving landscape of the construction industry, the concept of Environmental, Social, and Governance (ESG) has emerged as a transformative force, reshaping the sector’s approach to development.
This paradigm shift is particularly crucial for an industry that not only serves as a catalyst for physical and economic progress but also significantly impacts global indicators such as GDP and environmental sustainability, says Datuk Mohd Zaid Zakaria, CEO of Construction Industry Development Board Malaysia (CIDB).
Mohd Zaid said: “With a multiplier effect of 2.03, the construction sector plays a pivotal role, contributing to 6% of the global GDP. However, this substantial influence comes with a stark reality – the industry is a major contributor to carbon emissions, climate change, energy consumption, and waste.”
During his keynote address at the International Construction Transformation Conference (ICTC) on Nov 14, he emphasised the important role of the construction sector in serving almost all other sectors.
Mohd Zaid said, according to the World Economic Forum (WEF), holds the distinction of being the largest consumer when it comes to raw materials as well as constructed objects worldwide and is responsible for around 25% to 40% of the total carbon emissions globally.
In addition, it has been discovered that the construction sector has a significant responsibility for up to 50% of climate change, 40% of worldwide energy consumption, and 50% of landfill waste. Furthermore, the sector is also responsible for air, water, and noise pollution, as well as the destruction of natural habitats.
“WEF’s report also points out that by harnessing the capacity of the construction sector, many countries could cut emission rates effectively and achieve energy savings of more than 30%,” he said.
In the next part, HEIGHTS will zoom into the National Construction Policy 2030 (NCP), which looks to establish the principles of sustainable construction practices.