Enlarging the role of CEM professionals in corporate sustainability: ESG programs and the built environment

Corporations develop, own, operate, and direct a majority of all assets in the built environment (BE), and the development and operation of these assets is a significant component of global sustainability. In recent years corporate sustainability action for large companies has trended toward becoming embedded within corporate environmental, social, and governance (ESG) programs. However, ESG strategies and their impacts are only beginning to be understood by large corporations, with little definition for how to apply, measure, and assess the effectiveness of ESG practices. Every industry sector has some connection to the BE, and construction engineering, and management (CEM) professionals contribute to all phases of the BE life cycle, including development, design, construction, and operations. As such, CEM professionals are vital in developing and implementing sustainability practices specifically for corporations with large footprints in the BE. The purpose of this research was to assess the extent to which the BE is impacted by corporate sustainability practice through ESG programs. The research utilized a grounded theory approach to explore sustainability practices directly associated with the BE from companies within all 11 Global Industry Classification Standard (GICS) sectors. It presents a representative model that encapsulates current organizational ESG strategy, through the development of ESG action categories. A total of 24 different ESG action categories are presented and defined. The research further identifies those ESG actions commonly applied by large corporations and how these actions differ by GICS sector. This research indicates that over half of corporate ESG actions are related to the BE. Ultimately, this paper demonstrates the necessary role that CEM professionals should play in influencing sustainability practice through ESG strategy and action within the BE.