How do you navigate as an actor in the construction industry at a time when the requirements for sustainability, documentation and reporting keep on growing each year?
While ESG and legislation are an increasing feature of construction projects, nationally as well as internationally, long-term ambitions are at risk of being smothered by spreadsheets and compliance. The UN’s 17 Sustainable Development Goals, which are celebrating their 10th anniversary in 2025, can play an important role as a strategic compass. This is the opinion of Sara Krüger Falk, Executive Director of Global Compact Network Denmark and former chairperson of the 2030 panel.
“There is a sentiment among some companies that the SDGs are not as relevant as they were, since ESG and legislation have taken over. I totally disagree,” says Sara Krüger Falk, who goes on to explain:
“The SDGs are an aspiration for the world we want. ESG is the detailed documentation of how we get there.”
In other words, according to Sara Krüger Falk, ESG is a way of documenting how a company acts on the SDGs. And while ESG is about documentation and measurement, the UN's SDGs are about direction and ambition from a bigger perspective.
As chairperson of the 2030-panel until April 2025, Sara Krüger Falk was involved in preparing the panel’s Sustainable Development Goals Report for 2024/2025. It is clear in the report that even Denmark, which overall ranks third in the international SDG Index, still faces major challenges. This is particularly true when it comes to Sustainable Development Goal 12: Responsible consumption and production.
Denmark has the 11th highest consumption in the world, and if everyone lived like the average Dane, it would take 4.7 planet Earths to support the whole world’s consumption. Construction alone accounts for 31 per cent of the total material consumption in Denmark, and only 4 per cent of the resources used in Denmark - across all industries - are recycled. So there is a lot to gain from thinking circularly, says Sara Krüger Falk:
“There is huge potential in the circular economy, which we are not exploiting at all today. We only recycle four per cent of the materials we use. This is a frighteningly low figure for a country that considers itself one of the leaders in sustainability,” she says and continues:
“We are one of the countries with the highest resource consumption in the world, but we are also extremely innovative. If we can't break the code for a circular economy in Denmark with our technical expertise and highly qualified workforce, who can?”
Sara Krüger Falk points in particular to Danish production companies as potential pioneers. With their innovative workforce, companies have the opportunity to lead the way. And we're not talking about big steps here. Even small movements can make big advancements.
“I'm convinced that those companies who understand what the future holds will have greater success. Those who understand how to use their innovation skills to collaborate and find new solutions that can reduce their footprint, and who really think about how they impact their surroundings in a positive direction,” she says.
If the construction business and its suppliers seriously want to move forward, they must no longer regard sustainability initiatives as just an add-on, but as an integral part of the core business and project execution. And this process must start right from the tendering stage.
“Time and again we see people working in silos. The client has one budget, operations another, and the consultants are often brought in too late. As a result, the solutions that could create long-term value are chosen far too early on,” says Sara Krüger Falk.
She points out that many actors would like to prioritise sustainability, but the parameters make that difficult. That’s why holistic thinking and collaboration across the value chain are crucial. Especially in a field such as the circular economy, where the value is only truly triggered when several links are connected.
“It is extremely important for tenders to be environmentally sound and holistic - and that those devising the new solutions also bear this in mind from the start. It should be the norm to ask for the right documentation and be confident in engaging in issues such as total life cycle costs, waste sorting, material choices and flexibility at an early stage,” she says, adding:
“We need to move away from the idea that sustainability initiatives are an extra cost. Often it’s just about making things a bit smarter - and with more collaboration.”
According to Sara Krüger Falk, reducing the SDGs to communication or CSR is a mistake. Quite the opposite, in fact, they are a strategic tool for understanding where society is heading and what will affect the market, regulations and customer expectations.
“The Sustainable Development Goals help us to see where society’s challenges and business opportunities converge. And this is the area where actors in the construction industry should be navigating if they want to be relevant in 2030.
So, it is not about choosing SDGs over ESG and legislation, but about using them as a framework for innovation, collaboration and concrete actions. Construction doesn't just have the potential to reduce footprints - it also has the opportunity to create solutions that underpin health, well-being, the circular use of resources and social responsibility.
If you understand the future that we are heading towards and have the courage to act accordingly - you'll be stronger for it. On a business level, too,” concludes Sara Krüger Falk.
· Troldtekt recognises all 17 Sustainable Development Goals, but we have chosen to focus on four goals, in particular, which our business and activities can actively support:
Since 2010, Troldtekt has belonged to the UN Global Compact, the world’s biggest voluntary initiative, which calls for companies to operate in a responsible way.