ESG (Environmental, Social, and Governance) practices encompass a range of policies and actions that builders and developers disclose to stakeholders and regulators. Stakeholders and regulators increasingly demand ESG disclosures to assess risks, reputation, and long-term sustainability. However, various forums for disclosure, such as SEC reports and corporate social responsibility reports, present both opportunities and pitfalls for builders and developers navigating ESG commitments.

Builders and developers are increasingly focusing on environmental aspects of ESG, with a particular emphasis on climate reporting. Quantitative metrics like greenhouse gas emissions and net zero pledges are gaining importance alongside qualitative factors such as operational impacts and mitigation measures. Various climate disclosure rules are shaping the landscape. Despite challenges and anti-ESG sentiments, the momentum behind ESG practices is expected to continue growing, underscoring its enduring importance in the building industry.