Mechanism for Increasing Rating of ESG-Factors of Construction Investment Life Cycle

Abstract

Environmental, social and governance (ESG) issues are a key factor in investment decisions due to their rise in the public and corporate area. It is well known that integration of environmental, social and corporate governance (ESG) makes companies in the construction industry less vulnerable to economic, technological, political and regulatory risks, which results in diminishing cash flow volatility and enhances profitability at all phases of construction investment life cycle. Currently, there are a number of ways to include ESG factors in construction investment life cycle. One of the fundamental ways is "green" construction. Russian and foreign researchers consider green building to be an integral part of the global ecosystem, which is characterized by being environmentally-friendly, energy and resource efficient. Analysis of modern scientific literature reveal certain issues of "green" construction, most of which arise due to enhanced investment costs compared to conventional construction projects. Based on this, it is relevant to look into the market of modern green construction in Russia, outline directions of its development and overview modern technologies used in green construction. The authors propose ways to assess efficiency of green construction and estimate pace of development of the ESG factors of construction investment life cycle.