This study addresses a critical gap in the operationalization of sustainability frameworks at the project level by developing and validating an empirically grounded measurement instrument for assessing Environmental, Social, and Governance (ESG) compliance in manufacturing industry projects. While the United Nations Sustainable Development Goals (SDGs) articulate sustainability aspirations at the national and global level, and ESG frameworks capture organizational-level sustainability performance, no validated instrument exists for measuring ESG integration at the project level where sustainability commitments are ultimately operationalized. Drawing on the theoretical foundations of sustainable project management, stakeholder theory, and the ESG governance literature, the authors developed a 30-item survey instrument capturing six conceptual dimensions of ESG-aligned project performance. Data were collected from 2231 project sponsors and decision-makers in North American goods manufacturing firms classified under NAICS codes 31–33, which collectively encompass the entire manufacturing sector in North America. Through a sequential analytical approach employing principal component analysis (PCA) for initial item reduction, exploratory factor analysis (EFA) for dimensionality assessment, and structural equation modelling (SEM) for confirmatory validation, a parsimonious two-factor model emerged with excellent fit indices (CFI = 0.99, TLI = 0.98, RMSEA = 0.052, SRMR < 0.035). The first factor captures ESG planning activities undertaken during project initiation and planning phases, while the second factor represents ESG monitoring and controlling functions during project execution. The reduction from six theoretical dimensions to two empirical factors reflects lifecycle governance theory, where planning-phase governance and execution-phase control emerge as functionally distinct but correlated constructs. The validated instrument offers practical utility for project managers, organizational sustainability officers, and policy-makers seeking standardized benchmarks for ESG compliance at the operational project level. The validated instrument and complete survey are shared for replication and testing across different industries and countries.
Strang et al. (Tue,) studied this question.