Sustainability, Legality and ESG in Civil Construction: A Study in Mossoró/RN

1. Introduction

In the current economic scenario, organizations have increasingly directed efforts to maximize productivity, enhance competitiveness, and strengthen their market position. Global discussions that recognize human beings as agents of environmental transformation have expanded in scope, highlighting the growing commitment of organizations to practices aligned with sustainable development. The introduction of the concept of sustainable development, both internationally and nationally, demands an active stance from organized society in addressing environmental issues. Considering that companies are potential sources of adverse environmental impacts, a shared responsibility approach is therefore justified in order to mitigate the negative effects arising from business activities across various economic sectors [1].

From this perspective, environmental degradation has increased exponentially since the onset of the Industrial Revolution, as it is directly linked to population growth, rising consumption, and the production of goods and services. This period was marked by technological advancements, industrialization, and rapid urbanization, which fostered the development of industry and the creation of employment opportunities in urban areas, consequently leading to a significant migratory flow of the rural population toward urban centers [2].

The pursuit of sustainable development, consolidated over the years, requires organizations to continuously adapt the management and operation of their activities to meet the demands of contemporary realities. In this context, companies integrate the environmental dimension into their operational and managerial practices by implementing Environmental Management Systems (EMS) and adopting the principles of ESG (Environmental, Social, and Governance), which guide actions aimed at environmental preservation [3].

The implementation of environmental management and the adoption of ESG principles enable the development of cleaner production processes and less harmful products to the environment, generating economic benefits such as savings in time and materials without compromising service quality. Moreover, environmentally responsible practices become more appealing to end consumers, as they integrate environmental, social, and governance aspects, thereby enhancing sustainability and organizational accountability, despite facing resistance due to implementation costs [4].

In Brazil, the awareness of the importance of adopting ESG-related practices is still relatively recent for both companies and the government. A survey conducted in 2021 by the Brazilian Financial and Capital Markets Association (ANBIMA) highlighted the growth of this trend. Among the 265 asset managers interviewed, 86% stated that the ESG topic has gained prominence over the past 12 months, while 90% believe that its relevance is expected to increase or intensify over the next months [3].

The construction industry, which is the focus of this study, represents an equally dynamic and significant sector in the global economy, playing a vital role in urban infrastructure and socioeconomic development [5]. However, it is also one of the sectors with the greatest environmental impact, due to its high consumption of natural resources and substantial generation of solid waste. This sector’s dynamics are marked by the complexity of its processes and the intensive use of materials. Junior (2021) [6] found that several construction companies are implementing management tools in their activities. Their study revealed that the practices addressed in Cleaner Production (CP) help reduce the costs of material acquisition and waste collection, in addition to improving on-site operations. These practices prioritize waste reduction, reuse, and recycling, thereby mitigating the environmental impacts caused by the exclusive disposal of construction residues.

Therefore, environmental management integrated with ESG principles emerges as a strategy capable of transforming challenges into competitive advantages, driving sustainability within the sector. This approach makes it possible to meet the increasing demands of consumers and investors while promoting more responsible and efficient practices in the corporate environment.

Based on the above, this study aims to assess the level of knowledge and the adoption of safe practices by residential building construction companies registered with the Civil Construction Industry Union of Mossoró/RN, with a focus on environmental management indicators and ESG principles. The research focuses on identifying the socioeconomic characteristics of these companies, verifying compliance with environmental regulations, and analyzing how ESG principles and environmental indicators are integrated into their activities. The findings highlight persistent gaps in the implementation of structured management systems, but also point to promising initiatives that may serve as models for broader adoption within the sector.

2. Integration Between EMS, ESG and Environmental Legislation

Given the intense adverse socio-environmental effects present in contemporary society, corporate concern for the environment has also become a matter of great importance, influencing business strategies. This highlights that environmental concerns began to emerge with the structuring of the foundations of environmental management, especially in the 1980s with the implementation of the National Environmental Policy (PNMA) and the development of environmental management systems [7]. Environmental management began to take shape during the Industrial Revolution, with preservationist roots that evolved up until the Second World War. In the following years, scientific perspectives began to influence the debate, leading to the creation of institutions such as the International Union for the Protection of Nature (IUPN) in 1948 and the World Wildlife Fund (WWF) in 1960, which contributed to the environmental movement in developed countries [8]. In the 1970s, ecology began to be addressed by the State, culminating in the Stockholm Conference in 1972. In 1987, the Brundtland Report reinforced the inseparability of the economy and the environment. In Brazil, the 1980s marked the introduction of environmental and scientific processes, culminating in the 1981 National Environmental Policy and the 1988 Federal Constitution, which defined a balanced environment as a right. The 1992 Rio Conference was a milestone in environmental management, establishing Agenda 21 and other key agreements for sustainable development [9].

Barbieri (2023) [1] defines environmental management as a set of practices, processes, and strategies employed by organizations, governments, and society to plan, coordinate, monitor, and control human activities in relation to the environment. This management involves identifying and assessing environmental impacts, setting sustainability goals and objectives, implementing preventive and mitigation measures, seeking environmentally responsible solutions, and continuously monitoring to ensure regulatory compliance and ongoing improvement. The adoption of environmental practices within organizations has evolved over the years, as highlighted by Barbieri (2023) [1], through informal, formal, and proactive stages. According to the author, these phases represent a maturity trajectory in organizational environmental management. In the informal stage, companies typically adopt reactive measures, responding only to environmental incidents or external pressures. In the formal stage, the focus shifts to compliance with environmental regulations and standards, reflecting a more structured commitment to sustainability. Finally, in the proactive stage, organizations embrace a voluntary and strategic approach to environmental issues, aiming not only to comply with, but also to exceed legal expectations. This progression underscores the growing awareness of the importance of environmental management and its integration into companies’ daily operations, contributing to environmental preservation and the creation of sustainable value.

According to Bittencourt and Nossa (2024) [10], managers have already acknowledged the importance of developing a clearly defined corporate strategy for sustainability, yet they face significant challenges in formulating and implementing an effective action plan. The implementation of a sustainability strategy is particularly necessary given that each company has unique characteristics, such as its sector of activity, organizational structure, internal processes, capabilities, business policies, stakeholder interests, market dynamics, and external environmental influences, among other factors. Gomes (2018) [11] emphasizes that there is evidence indicating that companies with greater growth potential have more opportunities to implement sustainable practices in their operations. This perspective is supported by Kitsios et al. (2020) [12], who explain that larger companies are more subject to stakeholder scrutiny, which encourages the adoption of sustainable measures. They argue that companies tend to voluntarily adopt sustainable practices due to the intangible value generated by these actions, such as innovation, commission gains, and enhanced market competitiveness.

Strong financial performance not only represents opportunities for investors but also enhances a company’s ability to improve its environmental and social performance. In addition, socially responsible actions aimed at reducing costs and information asymmetries can generate positive financial outcomes [10]. In this context, the involvement of top management plays a key role in the success of environmental initiatives, as highlighted by Sanches (2000) [13]. The implementation of structured systems, such as the Environmental Management System (EMS) defined by ISO 14001, is essential to promote environmental efficiency and ensure sustainable business management and practices, regardless of the organization’s sector or size [14].

In parallel, the concept of ESG (Environmental, Social, and Governance) emerged as a complement to the Environmental Management System (EMS), highlighting sustainable management as a response to the growing global demands for sustainability. These systems not only promote responsible practices—such as recycling and the rational use of natural resources—but also reflect the engagement of financial institutions and international organizations, driven by milestones such as the Paris Agreement [15]. In Brazil, although ESG is often translated as EMS, it is important to distinguish governance from management: while governance establishes the guidelines, management is responsible for executing the practices. This integration reinforces companies’ commitment to mitigating environmental risks, conserving resources, and adopting the triple bottom line approach, which is vital for ensuring sustainability and competitiveness in today’s market [4].

Companies are being challenged to review their operations and strategies in order to remain competitive in the market. According to Ferreira et al. (2023) [16], many organizations adopt ESG criteria to add value to their businesses, with a focus on good governance, transparency, and environmental improvement. However, they still primarily concentrate on the environmental dimension, without effectively mitigating impacts, and invest little in the social and governance dimensions. Studies by Fernandes and Rezende (2020) [14] show that companies with adequate structures achieve results in terms of profitability, social responsibility, and reduction of tax-related issues, highlighting that a better balance among the three ESG pillars generates positive returns.

In this scenario, transformations in industrial activities, driven by growing environmental awareness and stricter regulations, reflect the need for compliance beyond outdated business practices. The implementation of an Environmental Management System (EMS) provides companies with a tool to comply with current legislation, ensuring internal organization and alignment with global standards. Additionally, the integration of Environmental Law into the Brazilian legal framework, consolidated by the Federal Constitution of 1988, established normative foundations and systems such as SISNAMA and CONAMA to structure environmental protection. These developments demonstrate how the adoption of approaches such as ESG and EMS is directly related to legal requirements and the evolution of sustainable management at both global and local levels [16].

5. Conclusions

The results indicate a predominance of small companies, which face economic and structural limitations in adopting sustainable practices, reinforcing the need for greater technical and financial support. Furthermore, the absence of specific training and dedicated personnel for environmental management and occupational safety contributes to the low adherence to more robust sustainability policies. This situation is exacerbated by the lack of knowledge about concepts such as ESG and the absence of integrated actions involving environmental planning, occupational safety, and solid waste management.

Although some companies already carry out occasional socio-environmental actions, these efforts remain insufficient to meet the sector’s environmental demands. There is still a long path ahead for the comprehensive implementation of integrated systems such as the Environmental Management System (EMS) and ESG principles. Training and raising awareness among organizations emerge as essential strategies to foster sustainability and promote corporate management aligned with the expectations of the market and society. However, the absence of robust environmental policies limits the reach of these initiatives. Thus, the study concludes that technical training, dissemination of ESG knowledge, and the promotion of incentives for the adoption of environmental management systems are key strategies to transform the construction sector into an agent of sustainable development. Investing in practical tools adapted to local realities, as well as in public policies that encourage sustainability, will be decisive.

Finally, the analysis reveals that despite their significant contribution to the regional economy, construction companies in Mossoró/RN demonstrate low maturity in Environmental Management Systems (EMS). To move forward, it is essential to adopt environmental management strategies adapted to the specific characteristics of the sector, aligning sustainability with operational efficiency. Such progress will enable these organizations to minimize environmental impacts and position themselves competitively in a market that is increasingly demanding in terms of sustainability.