Why should the Construction sector invest in sustainability?

sivanlachman
Jan 5, 2022
4 min read

Can Construction be Sustainable?

The need for buildings and construction processes to become more environmentally and people friendly is clear, concerns all the stakeholders and is strongly linked to the sustainability trend impacting the entire economy. The primary goal of sustainable construction is to reduce the industry’s negative impact on the environment and enhance its positive impact on society. That can be achieved by using renewable and recyclable materials as well as limit energy consumption and waste reduction within the construction process. Sustainability here goes beyond the end of the construction phase as the building will have to be more sustainable over its lifespan.

In addition to growing regulatory demands requiring industries to reduce their environmental footprint, this shift is also driven by consumer and investor preferences. More specifically, millennials want to 'go green' and are incorporating this factor into their buying and investment decisions. A 2021 survey by the American National Association of Homebuilders found that most buyers prefer to 'go green' when given the option. On average, buyers are willing to pay a premium for sustainable features that can save future utility costs and for homes certified for health and wellness. The popularity of LEED and WELL certifications are proof of that demand. Risk mitigation considerations are also adhered using this concept.

These trends are also emerging in commercial real estate segments and amongst asset managers, with many property firms pledging that all new buildings will be net-zero carbon.

What is a green building?

Buildings and the construction industry are together responsible for 39% of the world’s CO2 emissions. Urban areas are growing faster than ever. By 2030, 60% of the world’s population will live in urban areas and over 80% buildings by 2050 will already exist. Therefore, retrofitting a key in a sustainable construction strategy. It is now more important than ever that buildings are built in a sustainable way with little to no impact on the environment. Key stakeholders need to be engaged in this action mode for it to work, from financing to design and then implementation.

The thing is, green buildings are at the core of the SDGs. They lower overall CO2 emissions and save resources like water and energy. In some cases, they are net-zero buildings, which mean that they produce as much energy as they use. Poor indoor air quality is a major health hazard along with noise pollution, lack of proper lighting and more hazards impact people’s physical and mental health. Green buildings, on the other hand, are designed to improve human health.

Looking from a business perspective, green buildings make sense. They have higher rental and sales prices. Healthier buildings also enhance workforce productivity levels and cognitive functioning, resulting in higher performance and profitability.

SDG analysis of the construction sector

The construction sector can interact with nearly all of the UN's SDGs. The entire life cycle of a building interacts with the environment it is set in and the people who use it. Responsible design and procurement, worker safety and health consideration, careful thought into the passive components can go a long way. According to research, the four most important interactions are:

Goal 11 - Sustainable cities and communities

Cities and communities become resilient when they place fewer loads on external resources, thus helping to fight both climate change and prepare for rapid urban growth. Inadequate housing negatively impacts equality and inclusion, safety and livelihood opportunities as well as public health.

City and construction designers have an important role in making buildings that support sustainable cities and communities, from planning efficient energy and water management systems to smart transportation and waste management reduce pollution. Concepts of 15 minute cities are also being currently implemented to further reduce the vehicular movement and promote sustainable lifestyle. The construction industry sees itself playing a pivotal role in achieving this goal.

Goal 13 - Climate action

Climate change has become one of the greatest threats to human existence. This sector is responsible for nearly 40% of the global CO2 emissions. Of these, construction and building materials are responsible for 11% from extraction to transportation to disposal and building operations account for another 29%.

Using renewable energy sources in building design, efficient design techniques and cutting-edge engineering can help slow down the climate change. Going local, thinking about energy and water, installing living walls and roofs, careful planning, life cycle analysis, all go to reducing emissions and tackling climate change.

Goal 6 - Clean water and sanitation

Construction has a huge impact on clean water and sanitation. Operating a building, including landscaping, accounts for around 12% of total water use in the US alone. Proper plumbing, reclaiming grey water and fresh water management systems can have a big impact on the amount of fresh water used by a building and relieving the load on local resources. Protecting nearby water sources should become a priority for the sector as well.

Goal 3 - Good health and wellbeing

Health and wellbeing apply to both sides of the equation.

Construction workers are hundred times more likely to die from various work related diseases. Improving the working environment, safety awareness and occupational health of the workers are a means to this end.

People spend about 95% of their time indoors. Having a well-planned habitat is a major factor in their health and wellbeing. Proper lighting and ventilation will reduce carrying air borne respiratory virus cross infection by 9-20%. Adding vegetation helps purify the air from pollutants and improves mental health. And these are just some examples of the effect of passive components on people.

To sum

The construction sector is pivotal to the global economy and holds a significant place in every aspect of our lives. Ongoing shifts in consumer behavior and individual preferences are leading this industry to embrace technology and innovation, with digital platforms that will change many aspects of the industry.

Ultimately, what’s the role of businesses in achieving the SDGs? One argument is that businesses have a moral responsibility to achieve these goals, as they earn money by using the world’s resources. With the right Corporate Social Responsibility and Impact strategies, organizations can increase brand awareness, achieve higher profitability while lowering resource-based costs, risk mitigation and higher habitant satisfaction. All the while appealing to millenials and governmental bodies looking to increase the sustainability of the operations in their country, staying ahead of regulation and increasing profits.