Industry information update – ESG on construction industry

ESG for transformational affordable housing

Environment, Social and Governance are the three facets that characterise sustainable responsible investing for any organisation.

The rise of ESG standards in construction industry is expected to create a resilient and successful marketplace with long-term benefits fo stakeholders through a coordinated attempt to reduce the negative impacts on the environment.

The ESG framework for construction projects is developed in similar lines to the green building certification requirements, making green buildings a subset of it. The following are the key ESG parameters considered for any construction project:

EnvironmentalSocialGovernance
Energy savings and carbon emissions offsetLabour health, safety and environmentEnforcement of labour laws
Waste and Water managementGender inclusion Awareness of staff welfare and benefits
Resource efficiency through reducing, reusing, and recyclingCommunity engagement and buyer satisfactionFair payment terms and company policies
Occupant well-being and indoor environment comfort  

ESG provides a holistic strategy to enable a builder to gain understanding on the negative environmental and social impacts of their housing projects. For example, construction waste generated on site must be segregated and disposed of in a responsible manner.

Additionally, safety signages should be displayed in the local language of the construction workforce and mandating usage of PPE for them

It also enables the typically first-generation developers in the affordable housing segment to strengthen their corporate governance policies. For example, maintaining regularised wages and working hours for construction workers on site. Provision of a creche facility at the construction site to educate the construction worker’s children along with enforcing relevant policies to strengthen the prohibition of child & forced labour practices.

Infusing the concepts of ESG to create best practices for the construction sector will further help in achieving India’s climate target to reduce Emissions Intensity of its GDP by 45 % by 2030. This will further be a small step towards achieving India’s long-term goal of reaching net zero by 2070.2

So far India’s climate mitigation actions have been mostly financed from domestic resources. However, to address the challenge of climate change and achieve the Nationally Determined Contributions (NDC), there is a need for new and tailor-made funding required. Such funding opportunities are now coming in form of green bonds and climate finance from Development Finance Institutions to Indian banks and NonBanking Financial Companies (NBFCs).

The role of ESG is crucial to achieve the targets under India’s Panchamrit plan. To achieve this, real estate investors and lending companies should ensure that financing is aligned with positive and measurable climate, social and environmental co-benefits

Source:https://bfsi.economictimes.indiatimes.com/news/nbfc/esg-for-transformational-affordable-housing/101451819

Buyer Seller Meet

Indian Business Delegation for Buyer Seller Meet (BSM) in ASEAN Region covering Vietnam, Cambodia, Philippines & Indonesia from 20th Feb– 04th Mar 2023

SEPC with the support of Department of Commerce, Ministry of Commerce & Industry, Government of India and recommendation by EP Services Division, India is organizing India’s services sector trade delegation Buyer Seller Meet (BSM) to ASEAN region covering Vietnam, Cambodia, Philippines & Indonesia from 20th Feb. – 04th Mar. 2023 covering following sectors which have demand in ASEAN region:

➢Hotel & Tourism Services
➢Educational Services
➢Healthcare Services
➢Architectural, Construction & Related Engineering Services
➢Entertainment Services (Including AVCG)

Benefits to participants on participating at BSM to ASEAN region.

• Focused prescheduled B2B meetings in each country
• Understand the market potential from experts in ASEAN region.
• Networking Opportunities with potential buyers in ASEAN region.
• Generate business leads and sign MOUs for collaborations.
• Meetings with relevant government and related stakeholders

The tentative programme for this BSM is given in Annexure A for your kind reference.

An estimate of expenditure heads which has to be managed by the participants are –

  • Flight tickets: For 4 countries, approximate cost would be INR ,1,59,000
  • Hotel stay: Approximately USD 130 -165 USD per night.
  • Total Cost approximately for all 4 Countries – INR3,35,000.

SEPC shall share the details of travel partners for this delegation with participants separately.

MAI Support to Participants:

SEPC registered Members whose export turnover during the previous financial year is less than/up to Rs.50 crores and who have completed one year of membership with SEPC will be eligible for assistance under new MAI scheme up to a maximum of Rs. 75,000/- towards economy class air fare, subject to terms and conditions of new MAI scheme and approval by the Ministry of Commerce & Industry.

Registration Link: https://tinyurl.com/7v5byhr6