Last year’s UN Climate Change Conference, better known as COP26, threw climate change into sharp focus and highlighted the pressing need for governments, businesses and individuals to take urgent action to reduce emissions worldwide.
Such is the importance of the construction industry’s role in advancing environmental priorities and closing the decarbonisation gap, that an entire day was dedicated to the built environment. After all, the sector accounts for nearly 40% of global energy and process-related emissions, with the major contributors to these emissions being the materials used as well as the heating, cooling, and lighting of buildings and infrastructure. Often, building equipment relies on fossil fuels, meanwhile, the production of non-sustainable materials and transportation increases emissions.
Clearly then, as one of the least sustainable industries, much must be done to ensure greater integration of sustainable principles. Otherwise, the urgent pressure to deliver more homes in the UK will come at the detriment of the environment.
The benefits of making these changes, outside of positive effects on the environment, are certainly there, as consumers’ evolving preference for energy-efficient homes is only set to increase, particularly in light of the soaring energy costs.
Perceived barriers to sustainable construction
Recent data by the International Energy Agency (IEA) suggests that despite noticeable advances in increasing energy efficiency in buildings in recent years, the built environment sector is still off-track to achieving net-zero carbon by 2050. To meet this target, all new buildings and 20% of existing building stock would need to be zero carbon ready as soon as 2030.
If the industry is to succeed in its efforts to make meaningful change then barriers preventing this must be understood and deconstructed.
A common concern for construction companies is that there is not enough demand in the market to adopt sustainability to justify the investment. Figures state that about 40% of UK businesses said cost was the biggest issue in implementing sustainable practices. Upfront costs of ‘going green’ through new and more intricate processes may understandably be discouraging for firms.
For example, cement is a material widely used for its efficiency and relatively low cost, yet often overlooked in regards to its carbon output. Wired states that the cement industry alone generates 2.8bn tonnes of CO2 every year, more than any country other than China and the US.
Furthermore, constructing a property is a complex operation. It involves multiple parties of varying sized companies with different goals and client needs. Supplying the UK with new homes with an environmentally sound model will require a concerted effort across the board.
Yet a large number of firms are still playing catch up when it comes to sustainable solutions. Many green building processes and technologies that have been recently developed haven’t caught on as ‘commonplace’. As such, there isn’t an ability to share knowledge as easily as in traditional construction practices. As an industry, a concerted effort is needed toward greater education about sustainable products and practices as well as the incentives available.
Changing priorities
Perhaps the biggest trigger for change is the fact that homebuyers’ demands have certainly shifted towards sustainable properties, with a mixture of practical and motivational aspirations driving their increasing appetite for green homes.
In fact, a recent research survey commissioned by FJP Investment revealed three quarters (74%) of potential buyers are attracted to the greater energy efficiency that new-build properties afford – an issue which is becoming of heightened importance by the day, as energy price hikes place a larger financial burden on consumers.
Currently, the average household in the UK emits 2.7 tonnes of CO2 every year solely from heating. With the advent of remote working prompting many buyers to re-consider the efficiency of their living and home working space, it is clear that the environmental impact of properties will increasingly become part of homebuyers’ decision-making.
Indeed, construction companies ought to factor such figures into their operations – sustainability should not end at the build stage but continue functioning within optimal environmental performance once the property is occupied. Planning stages should not only factor in sustainable materials but also the installation of sustainable technologies, such as solar power, smart appliances and geothermal heat pumps, to name a few. Further, the prospect of future environmental regulations impacting the value of buyers’ homes, will likely play a part in the gradual shift towards eco-homes.
Ultimately, developers will need to rethink existing designs and accelerate the delivery of smart homes to adjust to home hunters’ evolving needs.
Further incentives
Adopting sustainable practices now not only ensures that the construction industry pulls its weight when it comes to fighting carbon emissions, but also moves companies into a position where they are prepared for future legislative changes. This pre-emptive move will allow companies to stay ahead of rapidly changing regulations regarding sustainability metrics for new homes – acting as a key driver for change and innovation.
Last year the UK government published its Heat and Building Strategy, which outlines the construction industry’s role to play as the UK presses on with its goal of complete decarbonization by 2050. Meanwhile, at the end of last year, the government also revised energy efficiency standards, new ventilation and overheating standards and electric vehicle charring point requirements for new homes in England.
Consequently, developers must take a step back and consider whether current new builds being erected will not only match homebuyers' demands but whether they will also fall in line with construction policy.
Positively, amongst the initiatives outlined in the Spring Statement, sat a key announcement that will see the rate of VAT on the installation of home sustainable energy solutions cut to 0 per cent. These eligible home improvements include air source heat pumps, insulation and solar panels; undoubtedly a step in the right direction that will help reduce energy bills for consumers and will help support retrofitting work for the construction sector.
There’s no doubt that sustainability is a complex issue for the construction sector, but it is critical that the industry faces the challenges head-on and plays its role in advancing a net-zero transition. Harnessing the value of technology to adopt environmental building practices, opting for greener materials and addressing the green skills gap will go a long way towards ensuring continuous progress in the industry. Such progress will allow the sector to maintain corporate social responsibility while remaining competitive in the face of homebuyers’ greener aspirations.
