Embedded ESG and its benefits in building construction project development in Nepal

AuthorMool, Poornima
Call NumberAIT Thesis no.CM-26-04
Subject(s)Building--Environmental aspects--Nepal
Building--Social aspects--Nepal
Social responsibility of business--Nepal
NoteA thesis submitted in partial fulfillment of the requirements for the Degree of Master of Engineering in Construction, Engineering and Infrastructure Management
PublisherAsian Institute of Technology
AbstractThe construction industry plays a vital role in economic development. However, this sector is associated with significant environmental, social and governance challenges which generates negative impact in the environment and community. The concept of Environmental, Social and Governance (ESG) principles nevertheless reduces the adverse impact of construction industry. Therefore, the research aims to evaluate the present condition of ESG integration in building construction industry of Nepal, identify key barriers & drivers as well as assess the benefits of embedding ESG principles. A qualitative research approach was implemented for this study using multiple case study method. The research was accomplished by analyzing five building construction projects of Nepal. The collected data were analyzed using case wise analysis and cross case comparison to identify patterns and differences related to embedded ESG.The findings reveal that ESG practices in building construction industry of Nepal is still emerging but not fully embedded across project lifecycle. Most projects demonstrate partial implementation with strong focus on occupational health & safety and basic governance compliance. The limited environmental practices in most of the cases which is focused on operation level of construction phase but not strategically integrated in planning. The study also identifies some key drivers of embedded ESG which includes regulatory requirements, client’s demands and awareness of environmental responsibility. However, several barriers hinder effective implementation of ESG practices such as awareness gap, lack of standardized ESG frameworks and limited technical expertise related to ESG. Despite these challenges, the research demonstrated that embedding ESG practices contributes to better environmental performance, improved project efficiency, enhanced worker safety and increased transparency. Therefore, the study concludes that embedded ESG in Nepal is still in emerging stage and there is significant potential for improvement in lifecycle integration, policy support and reporting system.This research provides valuable insights for policy makers, construction professionals and researchers by highlighting the importance of embedding ESG holistically to achieve sustainable construction development in Nepal.
Year2026
TypeThesis
SchoolFaculty of Civil and Environmental Engineering (2026)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSConstruction Engineering and Infrastructure Management (CEIM)
Chairperson(s)Hadikusumo, Bonaventura H. W.
Examination Committee(s)Kunnawee Kanitpong;Sakul Pochanart
Scholarship Donor(s)AIT Scholarship
DegreeThesis (M. Eng.) - Asian Institute of Technology, 2026


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