Building a Sustainable Future: ESG in the Construction Industry Jaya, Sarah, Parth, Tanish
Agenda CONTOSO Introduction to the Industry Parth Sustainable Building Materials Parth Water Conservation Tanish Climate Resilience Sarah Community Impact and Urban Renewal Jaya The Construction Industry Key Stakeholders and Stakeholder Map Strategies Case Studies Objectives and Targets Strategies Case Studies Objectives and Targets Objectives Targets and Impacts Materials Case Studies Competitive Strategies Strategies Case Studies Objectives and Targets
Introduction to the Industry
Construction Industry The construction industry contributes significantly to the global economy and urban development However, it is responsible for 39% of all energy-related CO2 emissions Traditional materials like concrete contribute to 8% of global CO2 emissions Growing demand for sustainable construction solutions
The Importance of Sustainable Construction in the Industry Why Sustainable Construction Matters: Growing Urbanization: By 2030, 60% of the world’s population will live in cities, placing immense pressure on construction to meet rising demands. To meet this surging human demand, global construction output is projected to grow by a staggering 2.5 trillion square feet by 2060. Environmental Impact: The construction sector accounts for over 30% of global resource extraction , 25% of solid waste , and 39% of energy-related CO2 emissions .
Key Stakeholders Government & Regulators : Enforce environmental regulations, incentivize green building Construction Companies : Adopt sustainable practices to reduce carbon emissions Suppliers & Manufacturers : Provide eco-friendly materials like CarbonCure , Hempcrete Clients & Investors : Push demand for greener, sustainable infrastructure Communities : Benefit from reduced environmental impact and greener living spaces
A stakeholder map showing the relationships between key players: government, construction companies, manufacturers, clients, and communities. Stakeholder Map
Competitive Strategies Innovation : Integrating carbon-sequestering materials like CarbonCure concrete Cost Efficiency : Reducing long-term energy use and maintenance costs Sustainability Leadership : Achieving certifications such as LEED Gold Companies set targets and objectives : Reducing embodied carbon, increasing renewable material use, and energy savings
Sustainable Building Materials
Introduction Sustainable building materials are designed to reduce the construction industry's carbon footprint. These materials go through life cycle assessment (LCA) to optimize recyclability, renewable resource use, and carbon sequestration.
Carbon Sequestering Building Materials CarbonCure Concrete : Incorporates CO2 into the concrete during production, reducing carbon emissions by 30% Hempcrete : Sequesters 50% more CO2 than traditional materials Sustainable Timber : A renewable resource that locks in carbon. Biochar : Used in insulation and landscaping, biochar sequesters carbon from organic material.
Turner Construction David Rubenstein Forum, University of Chicago: Turner Construction used CarbonCure concrete, reducing CO2 emissions by 500 metric tons. Other sustainable materials used: recycled steel, low-energy glass, leading to a 20% energy reduction. The building achieved LEED Gold certification. Case Study One
Microsoft’s Silicon Valley Campus Microsoft's Silicon Valley Campus used CarbonCure concrete, recycled steel, and low-carbon glass Green roofs and solar panels helped achieve net-zero energy consumption Embodied carbon reduced by 30% Case Study Two
Objectives and Targets Reduce Carbon Emissions: Achieve at least a 30% reduction in embodied carbon through materials like CarbonCure concrete by 2025. Increase Use of Sustainable Materials: Incorporate 50% more sustainable materials (e.g., recycled steel, bio-based products) in new projects by 2030. Energy Efficiency: Achieve net-zero energy consumption in 60% of new buildings by 2035 using technologies like solar panels and green roofs. Waste Reduction: Minimize construction waste by increasing the use of recycled materials and adopting circular economy principles, aiming for a 70% reduction by 2040. LEED Certification: Ensure 90% of new constructions meet LEED Gold or higher certification by 2028, showcasing leadership in sustainable building practices.
Impact of Sustainable Building Materials CarbonCure Concrete : Cuts embodied carbon by 30% Hempcrete : Sequesters more CO2 over its lifecycle Green roofs : Cut energy use by up to 30% Recycled materials : Reduce construction waste by 60-70%
Challenges and Solutions Challenges Solutions Higher Initial Cost Government incentives, tax breaks, and subsidies for green buildings. Limited Availability of Sustainable Materials Foster partnerships between construction companies and sustainable material suppliers to scale production. Resistance to Change in Industry Practices Training programs and awareness campaigns to promote the benefits of sustainable building materials. Complex Regulations and Compliance Simplify regulatory frameworks and provide guidance for easier compliance with sustainability standards. Lack of Expertise and Technical Knowledge Increase industry-wide training on sustainable construction practices and technologies.
Carbon Footprint Reduction & Water Conservation
Introduction Water conservation techniques and carbon footprint reduction methods are essential for minimizing environmental impact and improving resource efficiency in construction Innovative solutions like rainwater harvesting, greywater recycling, and low-carbon materials are helping to address these challenges effectively.
Carbon Footprint Reduction Low-Carbon Materials : Using sustainable building materials such as low-carbon concrete, recycled steel, or cross-laminated timber Renewable Energy Integration: Installing solar panels, wind turbines, or geothermal systems to generate renewable energy on-site Energy-Efficient Design : Designing buildings with natural lighting, superior insulation, and passive heating/cooling systems Smart Building Technology : AI-driven systems that manage and optimize energy use, reducing waste and emissions
Water Conservation Rainwater Harvesting : Collecting rainwater for use in non-potable applications like irrigation or cooling Greywater Recycling : Reusing water from sinks and showers for landscaping or toilet flushing Low-Flow Fixtures : Installing water-efficient faucets, toilets, and showers to reduce consumption Smart Water Management : Using IoT technology to monitor and optimize water use in real time
Apple Park Apple Park collects and reuses 68 million gallons of rainwater annually for landscape irrigation and non-potable applications. The greywater recycling system reduces water usage by an additional 30% compared to traditional office buildings. Powered entirely by 100% renewable energy, including a 17-megawatt solar farm on-site. The solar farm generates over 40 gigawatt-hours of electricity annually. Use of sustainable materials, Apple Park achieves a 70% reduction in carbon emissions compared to a traditional office campus. Case Study One
The Bullitt Center Collects around 56,000 gallons of rainwater annually, covering 100% of the building’s water needs The building operates completely off the water grid, using no municipal water Composting toilets and a greywater recycling system reduce water consumption by 90% compared to typical office buildings of similar size Generates about 230,000 kilowatt-hours (kWh) of electricity per year from its rooftop solar array, making it a net-zero energy building Uses 83% less energy than conventional office buildings, with a measured Energy Use Intensity (EUI) of 16 kBTU/sq. ft. per year Case Study Two
The Edge Captures 700,000 liters (approx. 185,000 gallons) of rainwater annually, used for HVAC systems and landscape irrigation. Utilizes low-flow fixtures and smart monitoring to reduce water consumption by 30% compared to conventional office buildings. The Edge is energy-positive, producing 102% of its energy needs through solar panels that generate 520,000 kWh annually. The building’s smart systems optimize energy usage, resulting in an Energy Use Intensity (EUI) of 41 kWh/m²/year, significantly lower than the typical office EUI of 200 kWh/m²/year in the Netherlands. Case Study Three
Objectives and Targets Focus on reducing embodied carbon (carbon emissions from material manufacturing, transport, and assembly) 40-50% reduction by 2030 in alignment with the Paris Agreement Aim to reduce water consumption by 20-40% by 2030 Some companies target net-zero water use, utilizing rainwater harvesting and greywater recycling for non-potable applications
Climate Resilience
Climate Resilience
Climate Resilience Methods Site Selection Planning Elevated Structures Flexible and Modular Design Biodiversity Incorporation Resilient Infrastructure Community Engagements Integrated Climate Risk Assessments Disaster Preparedness and Recovery Plans
Lendlease TCFD Framework 2050 Scenarios Preparing for a Range of Futures Progressive Approach Case Study One
Mace Group 2017 El Niño Floods in Peru 140 Critical Infrastructure Projects Thameside Reserve in Essex Enhance Biodiversity Case Study Two
Skanska USA Building Inc Hurricane Sandy Rockaway Boardwalk Reconstruction Project enhanced durability elevated the boardwalk protect the endangered breeding grounds Case Study Three
Objectives and Targets Task Force on Climate Related Financial Disclosures (TFCD) Global Reporting Initiative (GRI) Carbon Disclosure Project (CDP) Sustainable Development Goals (SDGs) Climate Bonds Initiative (CBI) Leadership in Energy and Environmental Design (LEED) Resilience ISO 14090: Adaptation to Climate Change Physical Climate Risk Metrics GRESB (Global ESG Benchmark for Real Assets) CIRIA Climate Adaptation Framework Embodied Carbon Metrics
Community Impact & Occupational Health
Social Sustainability & Construction Environmental Impact Economic Development Stakeholder Engagement Cultural Sensitivity Public Perception & Community Relations Economic Impact Worker Well-Being Legal Compliance
Canary Wharf Group Eden Dock Felix Project – Santa Stair Climb Circle Collective Brownfield Sites Case Study One
Mace Directly Supports SDGs 4,5,10, and 11 Isle of Dogs Renewal Project Mace Foundation Charity Partnerships Case Study Two
Objectives and Targets United Nations Sustainable Development Goals (SDGs) Increasing 'social value' to communities Maintaining exceptional safety standards Accessibility and equality ISO 45001:2018 accredited
Closing Remarks
Citations Turner Construction Sustainability Report: https://www.turnerconstruction.com . CarbonCure Technology: https://www.carboncure.com . Microsoft Silicon Valley Campus Sustainability: https://www.microsoft.com . World Green Building Council: https://www.worldgbc.org . Laing O’Rouke : https://www.laingorourke.com/ Skanska USA: https://www.usa.skanska.com/ Mace Group: https://www.macegroup.com/ Lendlease: https://www.lendlease.com/us/ Global Reporting Initiative: https://www.globalreporting.org/ Carbon Disclosure Project: https://www.cdp.net/en/ United Nations Sustainable Development Goals: https://sdgs.un.org/ Climate Bonds Initiative: https://www.climatebonds.net/ U.S. Green Building Council: https://www.usgbc.org/ International Organization for Standards: https://www.iso.org/home.html C40 Cities: https://www.c40.org/ Global ESG Benchmark for Real Assets: https://www.gresb.com/nl-en/ CIRIA: https://www.ciria.org/ Bechtel Corporation: https://www.bechtel.com/ American Society of Civil Engineers: https://www.asce.org/ United States Environmental Protection Agency: https://www.epa.gov/green-infrastructure Energy Performance of Buildings Directive: https://energy.ec.europa.eu/index_en Building Transparency: https://www.buildingtransparency.org/ Task Force on Climate-Related Financial Disclosures: https://www.fsb-tcfd.org/ The Edge Sustainability Case Study: https://www.the-edge-building.com Bullitt Center Sustainability Features: https://www.bullittcenter.org Apple Park Environmental Report: https://www.apple.com/environment/