Sustainable Construction and ESG Reporting in the Construction Sector: Indicators, Life-Cycle Assessment, and Financing Implications
DOI:
https://doi.org/10.5281/zenodo.18644924Keywords:
Sustainable construction, ESG reporting, life-cycle assessment, embodied carbon, whole-life carbon, EU Taxonomy, green bonds, CSRD, IFRS S1/S2Abstract
The construction and buildings sector is central to climate mitigation and is increasingly evaluated through standardized ESG disclosures and rule-based sustainable finance. Sector evidence indicates that in 2022 buildings accounted for 34% of global energy demand and 37% of energy- and process-related CO₂ emissions, underscoring the urgency of whole-life-carbon measurement and verifiable reporting. GlobalABC This paper develops an integrated framework that links (i) construction-specific ESG indicators, (ii) life-cycle assessment (LCA) and environmental product declaration (EPD) evidence aligned with ISO 14044, EN 15978, and EN 15804, and (iii) financing alignment under the EU Taxonomy and the EU Green Bond Standard, complemented by ICMA Green Bond Principles guidance. ISMA A standards-based method translates disclosure architectures (CSRD/ESRS and IFRS S1/S2; TCFD-style governance–strategy–risk–metrics structure) into auditable indicator dictionaries and LCA governance controls. The results provide an implementable reporting architecture (Figure 1) and a control matrix (Table 1) showing how verified LCA/EPD data reduces information risk, strengthens assurance readiness, and improves credibility of “green” financing claims. A quantitative baseline-to-target comparison is included to motivate forward-looking KPI targets consistent with net-zero building readiness milestones. IEA
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