Integrating environmental, social and governance (ESG) principles into public sector construction procurement: a New Zealand case analysis of evaluation weightings and criteria

Abstract

Purpose

This study examines how environmental, social and governance (ESG) principles are embedded in public sector construction procurement in New Zealand. It aims to evaluate the extent to which ESG considerations are integrated into contractor selection and how these reflect local policy priorities.

Design/methodology/approach

A content analysis was conducted on 102 publicly issued requests for proposals (RFPs) to assess the inclusion, weighting and thematic distribution of ESG-related evaluation criteria. The results were compared with international literature to highlight contextual differences.

Findings

ESG criteria were explicitly weighted in 45% of RFPs, typically between 1 and 20%, while 8% included them as unweighted considerations. The remaining 47% did not include any discernible ESG criteria. Commercial and heavy civil projects showed higher rates of ESG inclusion, while institutional and residential sectors lagged. Social outcomes, particularly workforce training, Maori and Pasifika inclusion and community well-being, received greater emphasis than environmental or governance criteria. The study also found that larger projects were more likely to include sustainability considerations, although the level of weighting was consistent across project sizes.

Originality/value

This research systematically evaluates ESG integration in New Zealand's public sector construction procurement at scale. It reveals a socially driven procurement model shaped by national policy and demographic priorities and highlights the need for more consistent application of ESG criteria across project types and scales.