Mechanism for improving carbon reduction efficiency in the construction industry based on ESG information disclosure

Purpose This study explores how Environmental, Social, and Governance (ESG) information disclosure affects carbon reduction efficiency in the construction industry. It identifies key ESG factors and analyzes the interaction mechanisms between governments and enterprises, aiming to develop a structured framework that promotes transparency, informs policy design, and enhances collaborative governance for sustainable construction. Design/methodology/approach A two-stage research design is employed. First, the DEMATEL-AISM approach is used to examine the causal relationships and hierarchical structure among 14 ESG-related factors, clarifying their influence pathways. Second, an evolutionary game model simulates strategic interactions between governments and construction firms under different parameter settings, including effort levels, environmental benefit coefficients, and reciprocity preferences. Sensitivity analysis is conducted to assess how these variables affect long-term strategic convergence. Findings The DEMATEL-AISM analysis identifies three core ESG drivers with the highest centrality and causal impact in the construction sector: S1 (subsidy and incentive mechanisms), S2 (information-sharing level), and G1 (technological innovation). Evolutionary game simulations reveal that cooperative strategies between governments and enterprises are more likely when the ESG quality standard (S0) exceeds 0.7 or when fixed incentives (SF) remain modest (SF = 0.2). Among all variables, the government's variable compensation coefficient (λ) plays the most decisive role in influencing enterprise disclosure behavior, highlighting the critical role of dynamic incentives in steering collaborative action. Originality/value Unlike prior studies that focus predominantly on empirical assessments or static models, this research integrates causal analysis with dynamic simulation to examine ESG disclosure mechanisms tailored to the construction industry. By modeling the interplay between information-sharing and strategic incentives, it offers a novel perspective on how targeted policy parameters can enhance ESG performance and carbon reduction. The findings provide actionable insights for designing effective incentive frameworks and improving stakeholder collaboration in sustainable construction governance.