Builders Blame Increase in Building Collapses on ESG Neglect
The Nigerian Institute of Building (NIOB), Lagos State Chapter, has emphasized that the disregard for environmental, social, and governance (ESG) factors by local construction companies is contributing to building collapses.
This was revealed during a recent press briefing in preparation for the 33rd Lagos Builders’ Conference and Annual General Meeting.
Sunday Wusu, a former Chairman of the Lagos Chapter of the institute, pointed out that the incidence of building collapses would reduce significantly if firms prioritized and adhered to ESG values. He added that companies committed to these standards are less likely to experience construction failures that result in the loss of both resources and lives.
He stated, “Environmental sustainability must be based on the careful identification and analysis of key criteria such as environment, social, and governance, and their impacts on the real estate sector.”
“ESG is the framework used to evaluate how a company manages risks and seizes opportunities in response to changing market and non-market conditions. You will agree with me that gaining these skills or knowledge is crucial for professionals in the real estate industry, particularly builders.
“This implies that real estate firms that fail to integrate key markers like ESG, along with strong performance reports, may struggle in this environment. Without investors, the real estate business cannot thrive. Significant financing often comes from other sectors, and if ESG is not a key consideration for your company or as a capable manager, such investments will not come your way.”
“Have we ever questioned why foreign companies tend to succeed more in our industry than the local ones?”
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During the conference themed “Breaking Barriers and Empowering Change in Nigeria’s Real Estate Sector: Process and Control,” Adeyemi Adeoye, Chairman of the Nigerian Institute of Building, Lagos State Chapter, stated that the 33rd Lagos Builders’ Conference 2024 would provide a platform for stakeholders and industry experts in the built environment to discuss critical issues and share insights regarding the Nigerian real estate sector.
He remarked, “This meeting aims to facilitate knowledge exchange and collaborative thinking to propel the sector forward. By addressing key challenges and opportunities, participants will have the opportunity to reflect on current practices and the future trajectory of real estate in the country.”
To thoroughly address the conference theme, several subthemes have been developed to educate participants and offer guidance for sustainable governance at both the state and federal levels.
These subthemes include the implementation of innovative financial models for building project development, housing affordability and financing, the impact of infrastructural development and new economic zones, environmental sustainability, and the influence of ESG on the real estate sector.
He also noted that the role of the regulatory environment in shaping the industry would be examined to provide actionable insights for stakeholders.
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