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Analysis


SUSTAINABLE CONSTRUCTION


DESIGNING AND BUILDING A GREENER FUTURE

The pursuit of net-zero emissions is placing a lot of pressure on engineering
and construction companies to lower the carbon footprint of new and retrofit
construction. But the amount of capital needed to meet that goal can be an added
challenge. Explore strategies to help the industry increase sustainability in
construction—while keeping costs under control.

 * 
 * 
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 * Save for later




REDUCING CARBON EMISSIONS IN CONSTRUCTION

The engineering and construction (E&C) industry is focusing on sustainable
development, overall energy consumption, and greenhouse gas (GHG) emissions.
Globally, the built environment accounts for 39% of gross annual carbon
emissions. This includes operational carbon—the ongoing carbon emissions from
day-to-day use—and embodied carbon—all the carbon emitted in producing,
transporting, and disposing of construction materials.

E&C companies and suppliers are feeling the pressure to lower the carbon
footprint of new and retrofit construction in their pursuit of net-zero
emissions. According to a survey by Dodge Construction Network, more than 90% of
US E&C companies receive requests from customers to lower the amount of embodied
carbon used in construction projects. However, the capital expenditure required
to realize this vision can be considerable.

A new look at sustainable buildings may help offset the needed investment,
either as new construction or a retrofit of an existing building. The industry's
trifecta of potential solutions—sustainable materials, sustainable methods, and
sustainable models—can help drive sustainable buildings. This report provides
some approaches and recommendations to help E&C companies lower the carbon
footprint from buildings within the bounds of realistic capital expenditure.


Sustainable construction Download the PDF



FACTORING SUSTAINABILITY INTO NEW PROJECTS

To reach net-zero emissions by 2050, some E&C, real estate, and building
management services (BMS) companies have started integrating renewable energy
and efficient construction into new builds. The 2021 World Green Building Trends
report highlighted those commitments to boost green building efforts remain
strong. For example, 34% percent of surveyed companies in the US were focused on
green buildings, and 46% reported that they would do so in the next three years.
The increasing global focus on climate change could incentivize construction
companies to factor sustainability into their construction projects, processes,
and designs.

A typical building constructed today could still be in use in 2070 and beyond,
but the climate that it will encounter would have likely changed significantly.
So, there’s a need to implement effective, low-carbon solutions to decarbonize
buildings along their life cycle. Innovation, digital technologies, policy
incentives, and supportive regulation are some factors driving the industry's
progress toward net-zero emissions.




SUSTAINABLE MATERIALS, METHODS, AND MODELS

The route to reduced emissions requires architects, designers, builders,
subcontractors, suppliers, technology service providers, and operating owners to
come together in new ways to solve for sustainability. It will likely also
involve developers accurately measuring all carbon sources to reduce, reuse, and
recycle wherever possible, as well as considering many aspects of their business
models.

Sustainable materials, methods, and models offer a route toward cutting embodied
carbon and creating a zero-emissions construction industry. Sustainable
materials require end-to-end strategic sourcing capabilities, including cost,
quality, and supplier management. Sustainable methods require effective supplier
collaboration and development programs to manage cost and risk. And sustainable
models require oversight across procure-to-pay processes and a high focus on
spending compliance.

But sustainable construction doesn’t necessarily have to be more expensive,
especially when pricing strategies, program management, and environmental plans
are incorporated from the beginning into the development process.

 * Sustainable materials: Costs of sustainable or low-carbon construction
   materials will likely gradually decline compared to conventional materials
   due to lower ingredient costs of recycled or by-product materials. The higher
   upfront cost of sustainable buildings can be offset by a lower long-term life
   cycle cost.
 * Sustainable methods: Prefabrication and modular construction, 3D-printing,
   advanced manufacturing, and material use optimization leveraging generative
   design can reduce the waste lifecycle of construction projects, thereby
   saving costs.
 * Sustainable models: Low-carbon business models and strategies can speed up
   many phases of construction and lower the costs of projects. A connected
   construction ecosystem can help ensure that developers and operators have a
   continuous flow of data and information.




SCALING NEW TECHNOLOGIES AND SOLUTIONS

So, what are some things the E&C industry can do to overcome current challenges
and increase the successful implementation of sustainable buildings? Engineering
and construction companies could consider four areas to scale new technologies
and solutions needed to solve the challenges associated with reducing the
adverse effects of climate change:

 1. Define a vision and develop a roadmap
 2. Drive and prioritize sustainability-targeted construction and retrofitting
    projects
 3. Use incentives to promote alternate materials
 4. Promote data-sharing standards

Achieving the vision for sustainable buildings and creating a zero-carbon built
environment will likely require adopting transformational approaches,
collaborating through global platforms, and working with governments for
incentives that can take new solutions to a commercial scale.




GET IN TOUCH

MICHELLE MEISELS

PRINCIPAL | DELOITTE CONSULTING LLP

mmeisels@deloitte.com

+1 213 688 3293



Michelle is a principal in Deloitte Consulting’s Technology practice and leads
our Engineering & Construction practice. Michelle brings more than 27 years of
consulting experience with a focus on lead... More


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