Deloitte’s Advice for a Sustainable Construction Industry

By Kitty Wheeler
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Deloitte, the multinational professional services network, offers insight on a greener future for the construction industry
Deloitte sheds light on sustainability challenges for construction across: designing, reducing carbon emissions, new builds, methods, models and materials

Deloitte, the multinational professional services network, has shared guidance on what best-practice sustainability looks like in the construction industry.

Designing and building for greener construction

The company points out the built environment accounts for 39% of gross annual carbon emissions, including that from producing, transporting and disposing of construction materials.

It also points out that the pursuit of net-zero emissions is placing pressure on engineering and construction companies to lower the carbon footprint of new and retrofit constructions, adding that the amount of capital needed to meet such goals can be “an added challenge”

Deloitte urges construction companies to explore strategies to help the industry increase sustainability in construction—while keeping costs under control”.

Deloitte CEO, Joseph Ucuzoglu

Citing a report from Dodge Construction Network, Deloitte says more than 90% of US E&C companies receive requests from customers to lower the amount of embodied carbon used in construction projects.

However, it points out that the capital expenditure required to realise this vision “can be considerable”.

Deloitte urged construction companies to take “a new look” at sustainable buildings, and how this “may help offset the needed investment, either as new construction or a retrofit of an existing building”. 

Incorporating sustainability into new construction projects 

It adds: “To reach net-zero emissions by 2050, some engineering and construction, real estate and building management services 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, The 2021 World Green Building Trends report highlighted that “34% of surveyed companies in the US were focused on green buildings and 46% reported that they would do so in the next three years.”

Deloitte reminds organisations that’s newly constructed buildings “may endure beyond 2070 and face significantly altered climate conditions”.

It adds that this necessitates effective, low-carbon solutions to decarbonise structures throughout their lifecycle.

It adds: “The construction industry's progress towards net-zero emissions is driven by several innovation, digital technologies, policy incentives and supportive regulation.”

Sustainability: methods, materials and models

Deloitte says sustainable methods, materials and models provide a route toward cutting embodied carbon and creating a zero-emissions construction industry. 

Deloitte expands on these three areas:

Sustainable methods  These include prefabrication and modular construction, 3D-printing, advanced manufacturing, and material use optimisation leveraging generative design can reduce the waste lifecycle of construction projects, thereby saving costs.

Sustainable materials  The costs of sustainable or low-carbon construction materials is likely to fall 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.

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Sustainable models  Low-carbon business models and strategies can speed up many phases of construction and lower the costs of projects.

Deloitte adds: “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.”

It also stresses sustainable materials need “end-to-end” strategic sourcing capabilities, that include “cost, quality, and supplier management”.

Yet while sustainable construction demands “robust supplier collaboration” and oversight of procurement processes, Deloitte says it need not be costlier –
“especially when pricing strategies, programme management and environmental plans are incorporated from the beginning into the development process”.

A connected construction ecosystem can help ensure that developers and operators have a continuous flow of data and information”, Deloitte continues.

New solutions and technologies 

It points out that there are four areas the E&C industry can consider scaling new solutions and technologies that can solve challenges surrounding reducing the effects of climate change, and that the way to achieve this is:

  • Define a vision and develop a roadmap
  • Drive and prioritise sustainability-targeted construction and retrofitting projects
  • Use incentives to promote alternate materials
  • Promote data-sharing standards

Deloitte says: “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.” 

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