ARTICLE · 23 FEBRUARY 2024

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ESG: A New Paradigm For Construction Agreements

Tiefenthaler Africa

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A new tide of processes is reshaping the way construction projects are executed and contracts are drafted. The integration of Environmental, Social, and Governance (ESG)...

South AfricaEnvironment

Johan Van Der Wath

A new tide of processes is reshaping the way construction projects are executed and contracts are drafted. The integration of Environmental, Social, and Governance (ESG) clauses into standard form construction agreements marks a significant moment in the construction sector, demonstrating its commitment to sustainable and responsible practices. While this shift is a positive step towards a greener future, it presents contractors with a host of opportunities and challenges that demand careful consideration.

Traditionally, construction agreements have focused on cost, time, and quality as the primary benchmarks for project success. However, the global emphasis on sustainable development has led to a paradigm shift, urging industry to prioritise broader ethical considerations. ESG criteria now play a central role in determining project viability and success, pushing stakeholders to align their practices with environmental conservation, social responsibility, and

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