International Construction Law Review
GOVERNING ESG IN UK CONSTRUCTION: PROFESSIONAL PERSPECTIVES AND DISPUTE RISKS
DR ARMANDO CASTRO*
Associate Professor, University College London
AND
DR MOHAMAD EL DAOUK**
Lecturer, University College London
SYNOPSIS
The rise of Environmental, Social and Governance (“ESG”) goals, standards, and criteria continues to transform the construction industry. This article explores the adoption and management of ESG in the construction sector, as well as its implications for sector members and their understanding of it. Key UK legislation that should be considered when managing ESG are also covered in this article. The conclusion reached is that although the legal framework for ESG is evolving, there are increasing risks of ESG-related litigation within the UK construction sector, and construction legal professionals have a vital role to play in this changing landscape. A future article will provide a comparative analysis of ESG.
1. INTRODUCTION
The construction industry in the UK is witnessing the integration of Environmental, Social and Governance (“ESG”) principles at an increasing rate. No longer aspirational targets, ESG cognisance has become a regulatory, financial, and reputational necessity for companies, and capital flowing into ESG-aligned investments is estimated at US$30.3 trillion globally,1 despite some scepticism among investors and policymakers.
* Dr Armando Castro, Associate Professor, Bartlett School of Sustainable Construction, University College London, barrister (email: a.castro@ucl.ac.uk).
** Dr Mohamad El Daouk, PhD (Cantab), Lecturer in Construction Law, Bartlett School of Sustainable Construction, University College London (email: m.daouk@ucl.ac.uk).
The authors would like to thank Michael Wheater KC and Ben Mellors for their valuable feedback during the preparation of this article.
1 Global Sustainable Investment Alliance, Global Sustainable Investment Review 2022 (Report, Global Sustainable Investment Alliance, 2023) www.gsi-alliance.org/wp-content/uploads/2023/12/GSIA-Report-2022.pdf (last accessed 18 August 2025).
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