ESG Disclosure Requirements and the Construction Industry Update

Watch our professional explain what you need to know about the new ESG (Environmental, Social, and Governance) disclosure requirements, and what it means for your business. This video covers the following:

• New ESG disclosure requirements for public companies, and how they may impact your private company in 2023
• Project owners may start to inquire about your ESG strategies
• Breakdown of what ESG means

Understanding ESG Disclosure Requirements for the Construction Industry – Video Transcript

Hi contractors, Kristen Belly here, CPA and certified construction industry financial professional at KatzAbosch, a CPA and consulting firm that specializes in construction contractors. As we wrap up this year and start thinking about next year, I wanted to share with you some information that will impact the construction industry in the near future, but the timing is still uncertain.

The Securities and Exchange Commission announced new environmental, social, and governance disclosures for public companies. Ninety percent of the S&P 500 companies already implemented some level of the disclosure requirements. Under the new rules, public companies must enhance and standardize certain disclosures, such as their impact on climate change.

Now, I know the number of public companies watching this video are few to none, but what happens at the public company level trickles down to the closely held and family-owned businesses. Additionally, real estate investors and private equity investors are asking about companies’ ESG narratives when deciding where to invest.

This could have a major impact on your ability to secure work in the future, as owners of projects will be inquiring with their vendors about their ESG strategies.

So, I just wanted to give you a little information on each item. The E stands for environmental and this focuses on saving the planet and includes topics such as climate change, deforestation, pollution, and energy efficiency.

Social focuses on people and relationships and includes topics such as gender diversity, equality and inclusion, customer satisfaction, and employee engagement.

And governance focuses on balancing people with profits and includes topics such as board makeup, fair wages, and transparency in policy.

Although this topic is new, we wanted to keep it on your radar so you’re not caught off guard when an owner or GC starts talking to you about your ESG strategies.

There is going to be a ton of information about this coming out, but we just wanted to give you a little introduction. So, have a great day contractors, and I’ll see you next time.

Stay Ahead of the Curve with ESG Compliance

At KatzAbosch, we’re dedicated to helping you understand the changes to the ESG disclosure requirements and how they can impact your business. Whether you’re looking to develop your ESG strategy or simply want to learn more about what these requirements mean for you, our team of experts is here to guide you every step of the way. Contact us today to secure your consultation and start building a sustainable, compliant future for your business.