90% in construction sector favour decarbonisation practices: KPMG report

84% of the respondents said they were optimistic about the direction of the construction market in India

90 per cent of companies in India favour decarbonisation practices like energy efficiency, construction waste reduction, more efficient use of sustainable and local materials, and use of renewable energy, a new report on Thursday showed.

According to the "Global Construction Survey 2023- India edition" released by KPMG, 60 per cent of companies envision benefits of ESG and are "aggressively" pursuing its maturity and development. The report was based on a survey of 119 senior leaders and CXOs representing Indian infrastructure/project owners, engineering & construction firms, and the Centre.

Moreover, 84 per cent of the respondents said they were optimistic about the direction of the construction market in India. Another 80 per cent feel infrastructure will lead to a "moderate positive" impact on the overall industry.

The optimism in India is higher than the global peers. According to the report, 92 per cent of Indian project owner organisations expressed "very optimistic" or "somewhat optimistic" views. The global average for this stands at 76 per cent.

In India, the optimism was higher in engineering/construction firms (80 per cent) as compared to a project or infra-owner organisations (78 per cent).

"The industry’s focus on ESG is real and is opening up to employee and worker wellness and motivation as solid levers to enhance retention. Digital and innovative technologies are generating handsome returns on investment and generating real-time cost reductions," said Suneel Vora, partner of Major Projects Advisory and Industry 4.0, KPMG in India.

KPMG also said that the construction industry in India has started to see returns on digital and technological investments.

"Data analytics, modular/off-site manufacturing, and digital twins are providing the highest performance improvement and rate of investment," it said.

50 per cent of the respondents using one or more of these technologies saw at least 10 per cent reduced project time/cost and avoided overruns.

"Respondents using modular/offs-site manufacturing on at least 50 per cent of their projects is set to rise from current day 16 per cent to 35 per cent in the next five years. This provides an enormous lever for unlocking performance, improving safety and quality, and is creating an opportunity for all stakeholders including the suppliers of such services," KPMG said.