Introduction
Construction companies must support the UN Sustainable Development Goals (SDGs) to address 2030 Agenda sustainability issues. Scholars underline the importance of firms, especially in sustainable industries like oil and gas (O&G), despite the lack of transparency in SDG implementation (Fei et al., 2021). Despite difficulties recognizing SDG targets, firms often focus on specific goals associated with their sustainability strategies or giving immediate benefits. The O&G industry, a substantial part of world energy sources, struggles to obtain the society and must be responsible for the harm it is making to the environment, which is a significant challenge for it, causing it to engage in CSR activities to reduce the negative impact and build positively to the society. Sustainability reporting shows that CSR programs promote transparency and responsibility, allowing corporations to engage stakeholders and address sustainability issues (Borges et al., 2022). However, CSR motivations must be clarified, particularly in Latin America, stressing the need for more research on business actions and the SDGs. This highlights the importance of exploring sustainable construction practices and their contribution to SDGs, a gap this study addresses by examining Latin American oil and gas companies’ alignment with key SDGs for the sector’s sustainability. Construction businesses’ alignment with UN SDGs shows variable degrees of engagement across targets and the need for specific focus areas to improve sustainability practices.
SDG Alignment Distribution
Through the study, SDG alignment distribution among the eight well-known construction companies, measured by the degree of commitment to the 17 UN SDGs, reveals a very different level of engagement. Although there is a more effective way for some companies to work towards a precise aim, they also indicate lower commitment. Given that the SDGs on gender equality (SDG 5) and decent work and economic growth (SDG 8) emerged as most intersected, an increasing number of companies highlighted these crucial aspects of the industry (Van Tulder et al., 2021). Moreover, cities and communities with the aim of sustainable cities and communities (SDG 11) and responsible consumption and production (SDG 12) contribute much to global efforts, confirming an approach that involves urban development and resource utilization. Nevertheless, lower stated alignment is recorded for goals like no poverty (SDG1) and life below water (SDG 14). Thus, societal problems and the environment might be generally overlooked (Nash et al., 2020). In addition to these numbers, similar investigations are valuable for revealing the reasons for differing degrees of alignment and determining what must be done to increase building sustainability. Thus, the research highlights construction companies’ alignment with the UN Sustainable Development Goals and areas for improvement, emphasizing the need to close gaps and promote sustainable practices industry-wide.
Additionally, the analysis shows that different goals show different levels of attentiveness in the construction companies, with some goals showing very high, average, or low attention to the issues about them. It should be noted that as gender equality (SDG 5) and decent work and economic growth (SDG 8) are more commonly mentioned, 6 of the 8 companies demonstrate their engagement and dedication to these goals (Borges et al., 2022). This is an explicit indication of the understanding of the reason why sex equality and the sustainable growth of construction industries are vital. On the opposite side, goals related to human life, such as no poverty (SDG 1) and life below water (SGD 14), have lower alignment with the number of companies stating their commitment, like one to four companies with a low stake in these fields; hence it is not highly relevant to these construction companies operations. Furthermore, two targets with medium overlaps with the restoration of ecosystems (SDG 15) and low-carbon emission cities (SDG 11) that featured in four and eight companies, respectively (Nash et al., 2020). This discusses partners who are involved in sustainable construction with a focus on considering the environmental impact that the industry has. This sets the stage for a broader plan to eliminate the mismatch between the current strategies and conceptualize the construction industry’s future shape. Thus, the research shows construction companies’ varied SDG alignment, underlining the need for industry-wide sustainable measures.
SDGs with Higher Alignment:
The research shows a high degree of overlap between the construction companies and most SDGs, particularly SDG 5s, 8, 11, and 12. This alignment underscores the industry’s recognition of fostering gender equality and promoting fair labor practices. For instance, construction companies commit to gender equality by giving men and women equal opportunities for recruiting, promotion, and leadership. Next, dedication to good work and economic growth implies that employment security and remuneration are fair and may be professionally improved, which increases employee welfare and economic progress (Borges et al., 2022). Furthermore, the industry is directed to SDG 11 due to sustainable cities and community work development. This involves undertaking programs that build environmentally responsible buildings, add to the physical infrastructure, and foster sustainable urban centers with qualities that enable them to withstand the impact of crises. They aim to promote sustainable development, improving urban populations’ quality of life. Besides, it is also an implication of SDG 12, which means the industry’s promise to use resources responsibly in the production process (Borges et al., 2022). This includes waste reduction, recycling, reuse, and sustainable purchase initiatives. Construction companies promote responsible consumption and production by improving resource efficiency, innovation, and environmental impact. Hence, construction companies support equality, sustainable development, and accountable resource management by aligning with SDGs 5, 8, 11, and 12.
Nevertheless, the fact that the Industry embraces sustainability in construction diversity creates an angle toward sustainability in the industry. However, a considerable part of unresolved challenges remain to be sorted out for sustainability in the industry to be achieved reliably (Mavi et al., 2021). Despite movements and actions linked to gender equality and decent work, some unevenness still may be present about the participation and possibilities for the underrepresented groups, which state that these actions should continue as the most effective towards diversity and inclusion.Moreover, though green urban plans are in place, there could be margins of failing in assisting in matters such as low-cost housing, getting services to the public, and strengthening resilience to climate change, most especially in areas where there is a high rate of urbanization (Sethi et al., 2021). Notably, recycling or reusing materials is and should always be the primary principle; there may be opportunities to substitute traditional production technologies or streamline supply chains with circular economic thinking. Thus, although the construction industry’s representation of SDGs represents a positive transition, continuous actions are needed to tackle the challenges and improve living conditions.
SDGs with Moderate Alignment
The construction industry recognizes the importance of employee well-being, health initiatives, and education programs, as shown by the moderate alignment with SDG 3 (Good Health and Wellbeing) and SDG 4 (Quality Education). Regarding sustainability goal 3, which involves health and safety initiatives, construction companies will adopt various health and safety measures to safeguard the wellness of their workers (Fernandez, 2019). Such actions include training on safety rules, ensuring employees can contact medical services, and fostering a way of life that values health in the work environment. Companies may be tackling the promotion of mental health awareness and support, and one of the reasons why they are doing this is because they are acknowledging the relevance of addressing both physical and psychological well-being among their employees. As a result, it is not only the concern that ensures the creation of a secure and healthy working place but also raises employee engagement and morale, productivity, and retention (Fernandez, 2019). Therefore, as indicated by its moderate alignment with SDGs 3 and 4, the construction sector prioritizes employee well-being, health, and education to build a safer, healthier, and more productive workforce.
Moreover, the operational link with SDG 4 indicates that the industry is mindful of allocating workforce industrial training and skills enhancement. Using training and development programs, construction corporations could enhance the skills of their employees through knowledge and competence, which would likely substantially increase their working performance and professional perspectives (Ahmed & Shanks, 2019). Inclusive programs for the said groups that promote education and training could also be part of the companies’ CSR campaigns. Through education and working to enhance skill-building projects, construction companies are not only part of the growth and furtherance of their employees but also the builders of a solid and knowledgeable future workforce. Hence, the construction sector’s moderate orientation to SDG 3 and SDG 4 recognizes the value of employee wellness programs, health facilities, and education programs, a progressive move that drives inclusivity and sustainability.
SDGs with Lower Alignment:
The analysis shows the lower alignment of the construction companies with SDG 1, 2, 14, and 15. This indicates that despite increasing the efficiency of the producing chains, the industry may need to speak to broader environmental concerns and emerging roles concerning poverty and hunger eradication. Among them is SDG 14, intended to save and use the marine and terrestrial ecosystems sustainably, while SDG 15 is a terrestrial ecosystem concern (Johansen & Vestvik, 2020). The prioritization of the marine and terrestrial ecosystems is positive. However, the construction sector’s performance in envisaging the achievement of these goals shows that the sector’s engagement in such activities is minimal compared to its counterpart in the industry that employs various agreements of preserving biodiversity, protecting ecosystems, and mitigating environmental degradation. The industry is also linked to SDG 1 and SDG 2, which raises doubt about the roles it plays in activities aimed at eradicating poverty and hunger (Hirons, 2020). Although construction projects are suitable for job creation and economic growth, the need for re-alignment shows a disinclination to implement projects that explicitly address poverty and food insecurity, especially in regions with many construction and socioeconomic policies. Therefore, the construction industry’s weaker alignment with SDGs on poverty, hunger, and environmental conservation underscores the need for increased worldwide efforts to solve these issues and promote sustainable development.
Furthermore, the construction sector’s weak correlation with SDGs related to poverty, hunger, and environmental protection shows that it needs to address sustainability issues beyond CO2 emissions and that sustainability must be broadened. By integrating social responsibility and environmental stewardship principles into their operations, companies can often bring economic improvement, food security, and environmental conservation into the community (Abdelkareem et al., 2023). It would be helpful to have fair universal hiring policies, invest in communities by building infrastructure, use sustainable construction practices to lower the environmental impact, and undertake all programs to eradicate poverty and hunger’s root causes. Additionally, cooperating with municipalities, nongovernmental organizations, and local communities is an additional essential element facilitating the fashion industry in solving these complex problems flexibly.
Opportunities for Strategic Focus
The analysis has been presented with several strategic options in the construction industry, particularly on the health and quality education programs corresponding to SDG 3 on health and wellbeing and SDG 4 on education. Also, the goals of SDG 6 on clean water and sanitation have been achieved by environmentally friendly water management practices (Torres et al., 2020). By developing health and safety programs, the contractors can create a safer workplace that will reduce the number of hazardous events and accidents, letting the employees feel better. The training occupations will involve implementing a comprehensive health and safety training program, making healthcare services convenient, and including employees in wellness. Additionally, investing in educational and employer skills development programs can help employees build their capabilities and knowledge, making them more effective in job performance, with increased productivity rates and high job satisfaction (Salvo et al., 2021). Through implementing such projects, construction companies not only ensure the health and injury-free environment of the workers but also develop a workforce of the desired level, intrinsically resilient to the challenges and rigors of the industry.
Furthermore, investing in health and education initiatives linked to SDG 3 and 4 and supporting sustainable water management mechanisms associated with SDG 6 can help promote environmentally friendly construction practices. By championing health and safety campaigns, construction companies create hazard-free working surroundings, lessen accidents, and increase workers’ wellbeing, consequently feeding into a stronger, more resilient, and more productive workforce (Salvo et al., 2021). Furthermore, talent development is another primary ingredient that strengthens the workforce contribution as it helps public sector employees improve overall job performance and achieve longer-term career prospects, leading to a more productive and adaptable workforce (Abdelkareem et al., 2023). In addition, enforcing environmental containment procedures curbs environmental effects and loss of resources, which are the primary source of risk associated with water scarcity and pollution (Torres et al., 2020). Through a structured approach to these aspects, construction companies are set to improve their operations and reputation and match the international sustainability goals, thus promoting an ongoing positive change encompassing the industry. Hence, construction sustainability practices can be significantly improved by strategically emphasizing sustainable water management, health, and education.
Limitations and Future Work:
A limitation of the analysis lies in its use of a small size of construction companies for sampling, which may be better suited to represent the scope of construction sector-related issues related to the United Nations Sustainable Development Goals (SDGs). UN recommendations stressing full-blooded data and sector-wide representation for achievement are necessary, as they give an accurate picture of SDGs’ performance. More profoundly, the lack of a more extensive dataset restricts the generalizability of the finding, and there may remain some sidelines or variations in the sustainability practices between different areas where construction projects are being carried out (Kordi et al., 2022). The analysis may only capture some SDG alignment issues and possibilities in the construction industry with a more extensive and diversified dataset, limiting its depth and dependability. Thus, the analysis’s SDG alignment findings are limited by its small sample size of construction enterprises.
Potential directions for future study include finding links between the SDGs to find out how they might be interconnected and affected by trade-offs in the construction industry. Researchers can learn a lot about the complicated links between sustainability goals by looking into how progress on one SDG might affect or slow down progress on others (Shayan et al., 2022). This can lead to more comprehensive ways of achieving these goals. Further analysis of managerial implications may reveal how construction organizations might integrate SDGs into their strategic planning, operations, and decision-making. This could mean examining how leadership, company culture, and involving stakeholders affect long-lasting results and practices. By studying these topics, academics may better understand how the building sector aligns with the SDGs and provide essential knowledge for making practices more sustainable and accomplishing larger societal and environmental goals (Shayan et al., 2022). Hence, future research should correlate SDGs to reveal interdependencies and examine managerial implications for incorporating sustainability practices to improve construction sector understanding and action.
Conclusion
Construction companies’ engagement with UN SDGs varies across goals, highlighting the need for strategic focus areas to improve sustainability practices. By looking at how these SDGs are aligned across construction companies, it’s clear that some goals, like gender equality (SDG 5) and sustainable cities and communities (SDG 11), get a lot of attention, while others, like ending poverty (SDG 1) and protecting the environment (SDG 14), don’t get as much scrutiny. Nonetheless, there are chances to improve sustainability practices in the industry through strategic focus, significantly boosting employee wellbeing, health, education, and sustainable water management. The small sample size limits the study’s usefulness, but future research focusing on understanding how the SDGs are connected and what they mean for managers can help the construction industry align with the SDGs, which will help achieve bigger social and environmental goals.
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