Secure environmental, social, and governance (ESG) data management for construction projects using blockchain

Abstract

Environmental, social, and governance (ESG) considerations are increasingly becoming imperative and obligatory across various industries. The ESG performance within the architecture, engineering, and construction (AEC) industry is under heightened market scrutiny. However, current ESG management in construction is still in its infancy due to two limitations: (1) a deficiency in ESG knowledge, such as indicators pertinent to construction activities, and (2) a lack of data security in ESG management, culminating in inefficient and unreliable environmental management practices. Therefore, this paper employs the Design Science Research Method (DSRM) to introduce a Blockchain-ESG Integrated (BESGI) framework, facilitating traceable ESG data management within construction projects. This framework presents three significant contributions. First, it identifies ten AEC-ESG indicators by analyzing ESG methods. Second, it proposes a mapping approach for AEC-ESG indicators to construction projects for key ESG information access and data source identification. Third, it develops a blockchain-based data management mechanism for traceable ESG data management in the BESGI framework. It validates and evaluates the framework in a construction project in Hong Kong. The results show that the framework is usable and can save labor costs by 20.15 % compared to traditional ESG management. This study offers a secure data management solution for ESG analysis of construction projects.