Down to Earth: Implementing Project-Level ESG Metrics in Chinese AEC Firms’ Practices

Abstract

As means to many ends, architecture, engineering, and construction (AEC) projects are the frontline to address environmental, social, and governance (ESG) concerns. Despite the high prevalence of ESG, little is known about how to assess and implement ESG as a practice in AEC projects, and such sparseness impedes the AEC firms pursuing this goal. Therefore, from the AEC firms’ point of view, this exploratory study tailored holistic project-level ESG metrics along life-cycle dynamics using a combination of methods, including a literature review, content analysis of ESG reports from sample Chinese AEC firms, and semistructured interviews. The authors used established ESG metrics as the coding scheme to develop an anatomy of ESG practices for AEC firms. The proposed ESG metrics are composed of 12 Tier-1 indicators and 41 Tier-2 indicators. This study contributes to the body of knowledge by extending the ESG concept to the project level, facilitating the operationalization of project-level ESG, and unfolding how projects obtain social legitimacy for AEC firms through ESG practices. This study also facilitates decision-making and provides managerial implications for professionals in the AEC industry who need an ESG assessment tool in the bidding process to evaluate owners’ ESG requirements, in the implementation stages to manage and supervise project delivery, and in postconstruction stages to assess a project’s ESG performance.