# Verifying SDG ESG Compliance in Manufacturing Industry Projects by Surveying Sponsors

**Authors:** Kenneth David Strang (Department of Business, University of the Cumberlands, Williamsburg, KY, USA; W3-Research) — ORCID 0000-0002-4333-4399; Narasimha Rao Vajjhala (Department of Computer Science, American University in Bulgaria, Blagoevgrad, Bulgaria) — ORCID 0000-0002-8260-2392
**Type:** Journal article (open access)
**Source:** Information, 17(4), Article 311
**Published:** 2026-03-24
**DOI:** https://doi.org/10.3390/info17040311
**Canonical page:** https://www.narasimharao.net/research/esg-compliance-manufacturing-projects-survey-instrument/
**Indexing:** Scopus Q1 · Web of Science ESCI Q2 · Impact Factor 4.3 (JCR 2025)

## Summary

**Question.** How can Environmental, Social, and Governance (ESG) compliance be measured at the level of individual manufacturing projects, where SDG and ESG commitments are actually put into practice?

**Finding.** Surveying 2,231 project sponsors and decision-makers in North American goods-manufacturing firms (NAICS 31–33), the authors validated a survey instrument for project-level ESG compliance. A 30-item, six-dimension draft reduced to a seven-item, two-factor model — ESG planning and ESG monitoring and controlling — with excellent fit (CFI = 0.99, TLI = 0.98, RMSEA = 0.052, SRMR < 0.035).

**Why it matters.** The SDGs work at national level and ESG ratings at company level, but until now there was no validated instrument for measuring ESG integration inside projects. The instrument gives project managers, sustainability officers, and policy-makers a standardized benchmark, and the complete survey is shared so it can be replicated in other industries and countries.

## Key findings

1. The study surveyed 2,231 project sponsors and decision-makers in North American goods-manufacturing firms classified under NAICS codes 31–33.
2. The authors developed a 30-item survey instrument covering six conceptual dimensions of ESG-aligned project performance.
3. A sequential PCA → EFA → SEM analysis reduced the 30 items to a parsimonious seven-item, two-factor model with excellent fit: CFI = 0.99, TLI = 0.98, RMSEA = 0.052, SRMR < 0.035.
4. Factor 1 captures ESG planning during project initiation and planning; Factor 2 captures ESG monitoring and controlling during project execution.
5. The reduction from six theoretical dimensions to two empirical factors is consistent with lifecycle governance theory: planning-phase governance and execution-phase control are distinct but correlated.
6. This is presented as the first validated instrument for measuring ESG integration at the project level; the complete survey is shared for replication.

## Study at a glance

| Item | Detail |
|---|---|
| Research question | Can ESG compliance be measured reliably at project level in manufacturing? |
| Design | Instrument development and validation; quantitative survey |
| Sample | 2,231 project sponsors and decision-makers in North American goods-manufacturing firms (NAICS codes 31–33) |
| Instrument | 30-item survey covering six conceptual dimensions of ESG-aligned project performance |
| Methods | Principal component analysis → exploratory factor analysis → structural equation modelling |
| Main result | Two-factor model (ESG planning; ESG monitoring and controlling) with CFI = 0.99, TLI = 0.98, RMSEA = 0.052, SRMR < 0.035 |
| Implication | A standardized, openly shared benchmark for project-level ESG compliance |

## Abstract

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.

## Key terms

- **Project-level ESG compliance:** The extent to which Environmental, Social, and Governance requirements are planned for and then monitored and controlled within a specific project, as opposed to being reported only at company level.
- **Project sponsor:** The senior person or group who authorizes a project, provides its funding, and is accountable for its business outcome.
- **Model fit indices:** CFI and TLI near 1 and RMSEA and SRMR near 0 indicate that a measurement model reproduces the observed survey data well.

## Limitations

- The sample is drawn from North American goods manufacturing; the authors invite replication in other industries and countries.

## How to cite

Strang, K. D., & Vajjhala, N. R. (2026). Verifying SDG ESG Compliance in Manufacturing Industry Projects by Surveying Sponsors. Information, 17(4), 311. https://doi.org/10.3390/info17040311

```bibtex
@article{strang2026esg,
  title = {Verifying SDG ESG Compliance in Manufacturing Industry Projects by Surveying Sponsors},
  author = {Strang, Kenneth David and Vajjhala, Narasimha Rao},
  journal = {Information},
  volume = {17},
  number = {4},
  pages = {311},
  year = {2026},
  publisher = {MDPI},
  doi = {10.3390/info17040311},
  url = {https://doi.org/10.3390/info17040311}
}
```