as did the increasing incidence of extreme weather events. Public awareness of sustainability and ESG factors is increasing, as is the potential for ESG related disputes to occur more frequently. Areas where ESG’s influence can expect to be felt in the construction sector going forward include: • Higher standards – the trend from governments is firmly towards setting higher ESG standards for construction industry compliance trough legislation and regulation. • Disclosure – reporting and monitoring requirements will increase requiring companies to provide more ESG data. This will lead to a greater level of administration and generate increased scrutiny and costs. • Procurement – ESG considerations are already part of procurement decisions in both the public and private sectors and this trend can be expected to increase. • Supply chain – contractors’ responsibilities for their supply chains will become more prominent as legislation is expected to enhance protections in this area. • Technology – smart cities and buildings, connecting communities to the built environment, operational efficiency and cost optimisation will be an increasing focus. Benefits will include the ability to monitor energy and water use, enabling a more sustainable environment. • Health and safety – construction regularly ranks as one of the most dangerous occupations. Continued focus and increased regulation can be expected. • Increased costs – adjusting the construction industry to comply with increasing ESG regulation will attract additional construction costs. • Standard form construction contracts – will increasingly include ESG provisions of greater scope and effect. For example, the NEC4 secondary Option X29 was published earlier this year with the aim of reducing the impact of construction works on climate change. Similar provisions will increasingly be incorporated into supply chain contracts. In the next 10 years it is clear that ESGrelated disputes will increase and come in a variety of forms due to the broad spectrum of ESG issues. Construction companies that can demonstrate that they perform well against ESG metrics will be in a better position to avoid or mitigate the impact of these disputes. 80 LAWYERMONTHLY SEPTEMBER 2022 About Kevin Attrill Kevin Attrill is a Managing Director at Ankura and a Chartered Quantity Surveyor with over 25 years’ experience in major construction and engineering projects across the public and private sectors. Based in Singapore, he provides advice to employers, specialists and contractors on a wide range of quantum issues. About Ankura Ankura is a global consulting firm providing services in construction disputes and advisory, data and technology, forensics accounting, and financial investigations as well as turnaround and restructuring. Contact Kevin Attrill Managing Director Ankura Consulting 460 Alexandra Road, #22-05 mTower, Singapore 119963 Tel: +44 07918 194297 E: Kevin.Attrill@ankura.com www.ankura.com As one of the world’s largest polluters, the global construction industry has become a particular focus for change in respect of its ESG impact.
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