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The construction industry recognises the need to accelerate its environmental, social and governance (ESG) ambitions. There is a place for roadmaps and strategies, but the culture shift necessary to deliver them is something that will require a concerted effort from the wider industry.

The change required to bring about better working practices – and ultimately a better built environment – is not happening quickly enough. The science tells us we need to pass peak carbon within the next two to three years to give ourselves even a flip-of-the-coin chance of avoiding the very worst impacts of climate change.

It was with this in mind that Multiplex created our ESG supply chain charter. We believe we are the first main contractor to take such a step to clearly set out what we require of our suppliers in terms of ESG. We have split our requirements into four distinct environmental areas: responsible and circular resourcing; building in sustainability; net positive biodiversity, water and air quality; and climate action. In addition there are four social equity areas: health, safety and wellbeing; diversity, inclusion and respect; socioeconomic value; and respecting communities.

Construction must demand more from all parts of the value chain so that we do not compromise the ability of the next generation to meet their own needs

We want to challenge the way both we and our partners do things, so the charter sets similarly demanding standards for Multiplex itself too. Construction must demand more from all parts of the value chain so that we do not compromise the ability of the next generation to meet their own needs – a principle that has been around for over 30 years but has yet to be realised.

A growing number of investors and developers are demanding more across a range of ESG themes from those charged with delivering their projects. Increasingly, core asset management companies now frame the environment, sustainability and wellbeing as key aspects of their investment strategy.

Such a shift in sentiment is crucial to the progress of ESG; pressure from developers and investors will push the industry down this particular road. There is nothing in principle to stop the construction industry from working in more of a partnership model to meet these new expectations.

While Multiplex’s environmental ambitions are clear, we know we are not going to deliver our objectives and goals solely by ourselves. We have to bring our supply chain with us.

Our new charter is demanding, and we recognise that resources can be an issue…  This is why we have set up a series of support networks to help our suppliers deliver on our ESG expectations 

Our new charter is demanding, and we recognise that resources can be an issue; not every firm is in a position to allocate several people to oversee compliance with our requirements; sometimes a firm’s ESG responsibilities are overseen by just one individual who also has other roles to fulfil. This is why we have set up a series of support networks to help our suppliers deliver on the expectations set out in the document.

Such support includes a range of training tools and resources focusing on sustainability, diversity, inclusion and fairness and addressing carbon emissions, through the Supply Chain Sustainability School, a not-for-profit organisation and collaboration platform featuring a range of stakeholders including clients, main contractors and subcontractors.

In a further drive towards collaboration, we created a Transport Taskforce where we brought together 40 of our subcontractors working across five projects, along with a representative of Transport for London, to ask them about the challenges they face with their own sustainability strategies and transport initiatives across projects.

We ran a series of discussions covering issues such as suppliers’ transition from a fossil-fuelled fleet of lorries to one powered by electricity or alternative fuels. If they were making the move to EV logistics, we offered help with that, for instance by providing charging points. We also asked about how changes to legislation, together with materials pricing and availability, affected their ESG ambitions.

Relationships with others in the supply chain will be key to the success of our charter, as will transparency. There is no reason to hide anything from competitors, or to hold back what we’ve learned or where we’ve struggled on the journey. There is more at stake here than the fortunes of just one company, so we have to collaborate. We are an industry in need of a fundamental shift and by doing things together we can bring about the transformation required, while saving others from repeating the same struggles.

Maria Fernandez Cachafeiro is head of sustainability at Multiplex