Summary
The 2026 ESG Methodology Report presents a practical framework to help construction companies measure, manage and improve their Environmental, Social and Governance (ESG) performance. Developed through a collaboration between researchers from the University of Galway and industry partner Gunn Lennon Fabrications Ltd, with valuable input from construction industry stakeholders, the methodology is designed to support organisations of all sizes, particularly small and medium-sized enterprises (SMEs), in embedding sustainability into their everyday operations.
The research team worked closely with industry partners to ensure the framework reflects real-world construction practices and challenges. The methodology was informed by a review of Irish and European ESG policies, an assessment of 50 leading Irish construction companies, and interviews with industry representatives from SMEs, large enterprises and consultancy organisations.
This collaborative research identified 26 key performance indicators (KPIs) covering environmental, social and governance priorities. These include carbon emissions, energy use, waste management, biodiversity, health and safety, employee wellbeing, diversity and inclusion, community engagement, ethical business practices, regulatory compliance and risk management.
Download ESG Indicators Toolkit
To support implementation, the project developed an Excel-based toolkit and dashboard that enables companies to collect data, monitor progress and identify opportunities for improvement. While not a formal reporting framework, the methodology provides a practical starting point for organisations preparing for recognised ESG reporting requirements and working towards a more sustainable, resilient and competitive construction sector.
Scale of the Challenge
The construction sector is a cornerstone of Ireland’s economy and infrastructure development, but it also faces significant sustainability challenges. The built environment is responsible for approximately 37% of Ireland’s energy-related carbon emissions, while construction activities generate substantial waste, consume large amounts of resources, and contribute to emissions across supply chains. At the same time, companies must address wider social challenges, including workplace safety, employee wellbeing, skills development, diversity and inclusion, and community engagement. Governance expectations are also increasing, with growing emphasis on transparency, ethical business practices, responsible supply chain management, and regulatory compliance. New reporting requirements, including the Corporate Sustainability Reporting Directive (CSRD), are increasing pressure on organisations to collect, manage, and disclose ESG data. While larger construction firms have made progress, many SMEs lack the resources, expertise, and practical tools needed to implement ESG effectively, creating a need for a sector-specific and accessible methodology.
Key Results
The project developed a practical ESG methodology tailored specifically to the Irish construction sector. Through a review of European and Irish policy frameworks, analysis of 50 leading Irish construction companies, and interviews with industry experts, the research identified 26 priority ESG Key Performance Indicators (KPIs). These comprise 10 environmental indicators, 6 social indicators, and 10 governance indicators covering areas such as carbon emissions, waste management, energy efficiency, biodiversity, health and safety, diversity and inclusion, stakeholder engagement, compliance, transparency, and risk management. The project also created a step-by-step implementation framework that guides organisations through policy development, KPI selection, data collection, baseline establishment, and annual performance monitoring. To support adoption, an Excel-based toolkit and dashboard were developed, enabling companies to input data, calculate performance scores, visualise trends, and identify improvement opportunities. The methodology provides a practical bridge between day-to-day operations and recognised ESG reporting frameworks.
Collaborators
The participating companies and industry partners gained practical insights into ESG implementation, performance measurement, and reporting readiness. The methodology and toolkit provide a structured approach to identifying strengths, addressing gaps, managing risks, and improving competitiveness, while supporting preparation for future stakeholder and regulatory requirements.
The methodology provides the Irish construction industry with a common framework for assessing ESG performance, improving consistency, benchmarking, and decision-making. It supports organisations in responding to regulatory changes, client expectations, and sustainability targets while helping SMEs participate more effectively in the transition to a low-carbon and responsible construction sector.
The project advances ESG knowledge by translating policy and sustainability principles into a measurable, construction-specific framework. It combines academic research with industry evidence to establish 26 sector-relevant KPIs and delivers a practical assessment toolkit that supports data-driven ESG monitoring, benchmarking, and continuous improvement across construction organisations.
By encouraging improvements in carbon reduction, resource efficiency, health and safety, employee wellbeing, diversity, and community engagement, the methodology supports broader climate, environmental, and social objectives. Improved ESG performance can contribute to safer workplaces, stronger communities, and progress towards Ireland’s sustainability and net-zero ambitions.
Principal Investigator
Dr Magdalena Hajdukiewicz
Director, Construct Innovate
Magdalena is a chartered engineer, lecturer in energy systems engineering and director of Construct Innovate: Ireland’s national research centre for construction technology and innovation. Her research interests focus on sustainability and innovation in the built environment, building performance modelling and monitoring, computational fluid dynamics simulation, indoor environmental quality, and smart and sustainable construction.
Podcast episode – coming soon
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