Blockchain-based approach to improve environmental, social, and governance (ESG) reporting in construction organizations

Atul Kumar Singh (corresponding author)¹, Nishanth Rao Dugyala², Farzad Rahimian³, Faris Elghaish⁴, Saeed Reza Mohandes⁵

1. NICMAR Institute of Construction Management and Research, Delhi-NCR, Bahadurgarh, 124507, India
2. Departent of Data Science and Business Systems, College of Engineering and Technology, SRM Institute of Science and Technology, Kattankulathur – 603203, Tamil Nadu, India
3. School of Computing, Engineering & Digital Technologies, Teesside University, Middlesbrough, UK
4. School of Natural and Built Environment, Queen’s University Belfast, Belfast, UK
5. Department of Civil Engineering and Management, School of Engineering, The University of Manchester, Manchester, UK

Published in the Journal of Information Technology in Construction, volume 30, pages 1497 to 1527, September 2025, in the special issue Smart and Sustainable Built Environment (SASBE 2024), guest edited by Mahesh Babu Purushothaman, Ali GhaffarianHoseini, Amirhosein GhaffarianHoseini and Farzad Rahimian. DOI 10.36680/j.itcon.2025.061.

Abstract

Existing ESG reporting tools in construction organizations often lack transparency and accountability, presenting significant challenges in effectively managing and reporting ESG data. This research addresses the gap in current reporting practices by proposing and validating a hybrid blockchain solution aimed at enhancing ESG reporting in the Architecture, Engineering, and Construction (AEC) industry. The primary objective is to develop a blockchain-based solution that automates ESG reporting, addressing issues such as data fragmentation, lack of verification, and inefficiencies. Adopting a design science approach, the study develops a conceptual framework that combines Ethereum and Hyperledger Fabric to create a hybrid blockchain model for the prototype. The comprehensive literature review highlights key challenges in ESG practices and emphasizes the potential of blockchain technology to overcome these barriers. The findings show that the hybrid blockchain model successfully automates the ESG reporting process, ensuring transparency, immutability, and accountability. The prototype, validated through a case study involving two construction organizations, demonstrates the feasibility of combining Ethereum and Hyperledger Fabric to manage ESG data, reducing errors, preventing manipulation, and enabling real-time reporting. This research enriches the theoretical understanding of blockchain applications in ESG practices. It provides practical implications by offering a tangible, blockchain-based solution that ensures transparent, reliable, and accountable ESG reporting in the construction industry, ultimately contributing to more sustainable practices.

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