Achieve ESG Goals in Construction and Built Environment with OKRs

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For years, many in the construction and built environment industry treated Environmental, Social, and Governance (ESG) criteria as a box-ticking exercise – something for the annual report or a tender submission. That time has passed. Today, a credible ESG strategy is a commercial imperative. Clients, investors, and a new generation of talent are not just asking about your commitments; they are demanding measurable proof of your impact. Vague statements and glossy brochures no longer cut it.

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The challenge, as we’ve seen with countless contractors and developers, isn’t a lack of good intentions. The real difficulty lies in execution. How do you translate ambitious goals like "becoming more sustainable" or "improving social value" into concrete actions that site managers, procurement teams, and subcontractors can actually deliver? Without a proper framework, these goals often remain disconnected from day-to-day operations, risking accusations of greenwashing and falling behind competitors.

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This is where a structured, proven approach becomes essential. Objectives and Key Results (OKRs) offer a powerful yet simple framework for turning your ESG strategy into a series of clear, measurable, and accountable actions. It’s about moving from aspiration to operation.

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What Are OKRs? A No-Nonsense Framework for Action

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Before we dive into the specifics of ESG, it’s crucial to understand what OKRs are at their core. Popularised by tech giants like Intel and Google but applicable to any industry, the OKR framework is a method for setting and tracking goals. It breaks down your high-level ambitions into a simple structure that everyone in the business can understand.

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It consists of three core components:

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Objectives: These are the memorable, qualitative descriptions of what you want to achieve. An Objective should be ambitious and inspiring. It is the destination on the map. For example: "Establish our firm as the regional leader in low-carbon construction."

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Key Results (KRs): These are the quantitative metrics that measure your progress towards the Objective. If the Objective is the destination, Key Results are the signposts that tell you if you’re on the right track. They must be specific, measurable, and time-bound. For the objective above, KRs could be: "Reduce embodied carbon by 15% across all new projects by year-end" or "Secure three major projects where BREEAM 'Excellent' is a primary client requirement."

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These are the quantitative metrics that measure your progress towards the Objective. If the Objective is the destination, Key Results are the signposts that tell you if you’re on the right track. They must be specific, measurable, and time-bound. For the objective above, Key Results could be: "Reduce embodied carbon by 15% across all new projects by year-end" or "Secure three major projects where BREEAM 'Excellent' is a primary client requirement."

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Initiatives: These are the specific projects and tasks you’ll undertake to drive progress on your Key Results. For instance, initiatives to reduce embodied carbon could include "Train all quantity surveyors on the use of carbon calculation software" or "Develop a new preferred supplier list based on Environmental Product Declarations (EPDs)."

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Many organisations confuse Key Results with Initiatives. A Key Result is an outcome, not an activity. Completing a task is an Initiative. Seeing a measurable change as a result is a Key Result.

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Why the UK Construction Sector Urgently Needs This Structure for ESG

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The UK construction industry faces a unique set of pressures that make an effective ESG framework more critical than ever. The built environment is responsible for a significant portion – estimates suggest around 40% – of the UK’s total carbon emissions. This fact alone places the sector under intense scrutiny from government and the public. Beyond carbon, issues like construction and demolition waste, water usage, and biodiversity impact are significant.

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Socially, the industry has a profound effect on communities and its workforce. From health and safety on site (an area of constant focus), to skills training, modern slavery in the supply chain, and local employment, the social value a project delivers is now a key factor in public sector procurement.

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Governance, the third pillar, addresses the transparency and ethics of your operations. This includes everything from fair payment practices with subcontractors to anti-bribery policies and a diverse leadership team. A structured framework like OKRs helps ensure these are not just policies sitting on a shelf, but principles embedded in daily business decisions. Without one, you’re simply hoping for the best.

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How To Implement ESG OKRs in Your Business

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Adopting OKRs doesn’t need to be a complex exercise. In fact, its power lies in its simplicity. We would recommend starting with a focused pilot, perhaps on a single project or within one business unit, is often the most effective approach.

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Step 1: Define Your High-Level ESG Objectives

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Begin by looking at your company’s core strategy and values. Your ESG objectives should be a natural extension of who you are and where you want to go as a business. Don’t create them in a vacuum. Align them with recognised standards or frameworks like ISO 14001 for environmental management.

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Consider objectives across the three pillars:

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Environmental Example: "Become a recognised leader in circular economy principles within the UK construction market."

Social Example: "Create the safest and most supportive working environment for all site-based personnel."

Governance Example: "Build the most transparent and ethical supply chain in our sector."

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Step 2: Develop Meaningful and Measurable Key Results

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This is where strategy meets reality. Each objective needs 3 to 5 Key Results that are unambiguous and quantifiable. This is how you’ll know, without question, if you are succeeding.

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Let’s take the Environmental Objective - Become a recognised leader in circular economy principles

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Key Result 1: Divert 98% of non-hazardous site waste from landfill across all projects by the end of Q4.

Key Result 2: Increase the proportion of materials with recycled content from 15% to 30% in our specifications.

Key Result 3: Successfully pilot a material passporting programme on two flagship projects this year.

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Notice these are outcomes, not tasks. They are measurable, challenging, and directly related to the objective.

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Step 3: Cascade and Align OKRs Through the Business

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The real power of this framework is realised when these high-level goals are cascaded down. A company-level Key Result to divert 98% of waste from landfill can be translated into relevant OKRs for different teams.

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The Procurement Team's Objective: Optimise material procurement to minimise waste generation.

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Key Result 1: Reduce packaging waste from top 20 suppliers by 25%.

Key Result 2: Ensure 100% of timber orders are cut-to-size to eliminate offcut waste.

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A Site Manager's Objective - Run the most resource-efficient site in the company.

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Key Result 1: Achieve a 99% waste diversion rate for my specific project.

Key Result 2: Reduce skip movements by 15% through better segregation and compaction.

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This creates a clear line of sight from individual and team actions to the company's overarching strategic goals. Everyone understands how their work contributes.

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Step 4: Track, Review, and Adapt Relentlessly

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OKRs are not a 'set and forget' tool for an annual appraisal. Their effectiveness comes from a disciplined rhythm of regular check-ins. Many contractors find a quarterly cycle works well. At the start of the quarter, teams set their OKRs. Throughout the quarter, they have brief weekly or fortnightly check-ins to discuss progress, roadblocks, and confidence levels. At the end of the quarter, they score their performance (a score of 70% on an ambitious KR is often considered a success), reflect on what was learned, and set OKRs for the next quarter.

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This continuous feedback loop, a shift away from traditional annual reviews, keeps ESG at the forefront of operational discussions and allows for real-time adjustments.

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Common Pitfalls to Avoid on Your OKR Journey

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We’ve seen businesses stumble when implementing this framework. Being aware of the common pitfalls from the outset can save significant time and effort.

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Setting Unrealistic Expectations: While Objectives should be ambitious, Key Results must be grounded in reality. Don’t set a Key Result to reduce emissions by 50% in one quarter if you have no initiatives planned that could possibly achieve it. Start with achievable, incremental improvements to build momentum.

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Confusing 'Business as Usual' with Objectives: OKRs should be used to drive change and improvement, not simply to measure day-to-day tasks. "Submit all tenders on time" is business as usual. "Achieve a 20% uplift in quality scoring on all public sector tenders" is a Key Result that pushes for improvement.

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Lack of Senior Sponsorship: For OKRs to be taken seriously, they must be championed by the leadership team. When senior managers actively use the framework to guide their own work and review progress, it sends a powerful message throughout the entire organisation that this is a priority.

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Treating it as a Performance Management Tool: OKRs are about alignment and driving progress, not about judging individual performance for salary reviews or bonuses. Separating the two encourages teams to set ambitious 'stretch' goals without fear of failure, which is where real innovation happens.

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The Saint Global Perspective

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We work exclusively with businesses in the construction and built environment sectors, helping them define and achieve their commercial goals. We see first-hand that a well-articulated and genuinely implemented ESG strategy is no longer a peripheral activity; it is a core driver of business development and long-term resilience. Companies that can clearly demonstrate their positive impact are winning more work, attracting better talent, and building stronger brands.

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Our role is to connect these genuine ESG efforts with commercial success. It's a process that needs to be joined up. It starts with Strategy, where we help leadership teams use frameworks like OKRs to set clear, commercially-astute ESG goals that differentiate them from the competition.

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But a great strategy is useless if clients don't see the proof. That's why we create Collateral – the compelling case studies, project photography, and website content that brings these achievements to life. We then use strategic Placement, including targeted digital marketing and public relations, to ensure these messages reach the stakeholders who matter most. Finally, our Business Development support embeds these strategic initiatives into your tendering and commercial processes, turning your ESG performance into a tangible competitive advantage.

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Effectively communicating your ESG story isn’t just about reputation; it’s about creating commercial opportunities. If your business is ready to move beyond simple compliance and start using your ESG credentials to win, book an initial consultation with our team.

What is ESG in construction?

ESG (Environmental, Social, and Governance) in construction refers to sustainable practices that address environmental impact, social responsibility, and governance standards. This includes using low-carbon materials, supporting local communities, and maintaining transparent business practices throughout construction projects.

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How can construction companies implement ESG practices?

Construction companies can implement ESG by conducting lifecycle assessments, choosing sustainable materials like recycled steel and timber, hiring locally, designing for accessibility, and establishing clear governance frameworks with transparent reporting structures.

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What are the business benefits of ESG in construction?

ESG implementation provides competitive advantages including regulatory compliance, cost savings through energy efficiency, improved client relationships, access to sustainable financing, enhanced reputation, and positioning for future market opportunities as sustainability becomes mandatory.

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Which ESG certifications should construction companies consider?

Key ESG certifications include BREEAM for environmental assessment, WELL for health and wellbeing, the Considerate Constructors Scheme for social responsibility, and ISO 14001 for environmental management systems. These provide frameworks for measuring and demonstrating ESG performance.

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How does ESG compliance affect construction project costs?

While ESG implementation may involve initial investment, it typically reduces long-term costs through energy efficiency, waste reduction, and operational improvements. Many ESG practices, such as local hiring and efficient design, can actually lower overall project costs while meeting compliance requirements.

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