Critical factors fostering green procurement and ESG implementation in the Hong Kong construction industry

Abstract

Sustainability and ESG are global priorities, including in Hong Kong, where Green Procurement (GP) is key to ESG assessment in construction. Despite government promotion via the 'Green Procurement in the Government' Circular, private sector adoption lags. This study investigates the key factors influencing GP implementation and evaluates the applicability of the Global Real Estate Sustainability Benchmark (GRESB) framework to the construction industry. However, there is a lack of relevant research analyzing these two aspects, in the context of Hong Kong, which constitutes a research gap. A mixed-methods approach was employed, combining qualitative and quantitative analysis. Through a systematic literature review, 30 factors affecting GP adoption were identified and grouped into four categories: organizational, external, financial, and technical. These factors were validated through four expert interviews. Subsequently, a questionnaire integrating GP factors and GRESB ESG components was developed. Structural Equation Modeling and regression model were used to analyze relationships between major factors and GP adoption and the significance of ESG components. The findings highlight five critical factors influencing GP adoption: senior management commitment, government regulations, assessment criteria, lifecycle considerations, and training costs. Additionally, the study reveals that the GRESB Framework requires adjustments to align with Hong Kong’s construction industry context. Practical recommendations are provided for stakeholders to enhance GP promotion. This research aims to facilitate broader GP adoption in the private sector and support the refinement of ESG frameworks, ultimately advancing sustainability in construction.