Why are ESG principles important?

Today, there's little doubt about the value of an effective Environmental, Social, and Governance strategy for modern organisations. From enhanced brand reputation to reduced regulatory risks and optimised resources, it's hard to argue with the advantages presented.

What is the 'E' in ESG?

This article, the first in our series on ESG in construction, focuses on the first letter of the acronym, 'E,' and the environmental factors that comprise ESG. Keep an eye out for upcoming articles that unpack the social and governance pillars.

Here, though, we'll explore environmental action steps to minimise the industry’s impact on the natural world – from addressing environmental risks to mitigating the impact of construction projects.

What is ESG in construction? And why is the 'E' important?

When ESG is mentioned in our sector, discussions usually revolve around environmental performance, energy efficiency, and how construction projects can be planned in a sustainable way – a way, that is, which minimises environmental risks and helps mitigate climate change and global warming by reducing greenhouse gas emissions.

This focus is justified – and the importance of environmental concerns can't be overstated. Indeed, it's estimated the built environment accounts for a staggering 39 percent of global carbon emissions, of which 28 percent comes from general operations and 11 percent from raw materials.

How construction businesses can take care of the environment

These figures underscore the urgent need for sustainable practices in the construction process to reduce its impact on the environment. Let's take a look at how the construction industry can protect the environment and limit its impacts.

1. Reduce carbon emissions

Reducing carbon emissions is imperative for the construction industry, and one of the best ways to safeguard the environment is to lower the carbon footprint of your firm and your supply chain.

You can achieve this by minimising carbon emissions (CO2) produced by industrial processes or during construction, and by transitioning to carbon neutral or low-carbon smart technologies. For instance, sourcing lower embodied carbon materials or energy-efficient or renewable technologies from local sources, integrating electric vehicles and Manual Handling Equipment (MHE) into your fleet, and improving your energy efficiency can all drastically reduce your carbon footprint.

Offsetting carbon is a complementary initiative (although carbon avoidance and carbon reduction should be the first considerations). This is accomplished by participating in reforestation or tree planting, investing in carbon credits, or harnessing renewable energy sources like solar panels and wind turbines.

These efforts not only mitigate greenhouse gas emissions, and in turn climate change, but also align with sustainable investing principles, showing your construction business' commitment to environmental stewardship for the benefit of future generations. To find out more about tackling carbon emissions in buildings and infrastructure, PAS 2080 provides essential guidance.

2. Implement waste management plans

Well-planned waste management is essential to reduce the environmental impact of construction sites. Start by prioritising the waste hierarchy; prevention, reuse, recycling, recovery and, as a last resort, disposal. By designing out waste and selecting recycled materials or building materials with low waste impacts, you can significantly reduce the amount of waste generated.

Proper waste management also helps mitigate environmental issues like soil, water, and air pollution. Firms should follow best practices and local regulations to ensure the safe handling and disposal of hazardous materials like asbestos, lead, and other chemicals.

Importantly, though, when you reduce waste, it's not just good for the environment – it can also lead to better resource efficiency, cost savings and carbon reduction.

3. Take energy-saving measures

Energy efficiency is a cornerstone of sustainable construction practices. To reduce environmental impacts of a new construction project, companies should actively reduce energy consumption and avoid relying on energy sources that pollute the environment.

Construction companies can reduce energy consumption by upgrading to energy-efficient equipment, incorporating green building certifications (e.g. BREEAM / BREEAM Infrastructure), and investing in smart building technologies on new projects, reducing their reliance on fossil fuels and protecting natural resources.

Indeed, designing buildings with efficiency in mind – for instance, maximising natural light, improving insulation, and incorporating optimised HVAC systems – can elevate your ESG credentials, while also improving ambient air quality and the overall experience for end users.

4. Improve water conservation

Water conservation is another key environmental concern when it comes to ESG in construction. By leveraging efficient irrigation systems, fixing leaks promptly, recycling water on-site and using drought-resistant landscaping, companies can significantly reduce water usage and prevent unnecessary waste generation. The concept of water neutrality provides vital guidance on the standards we must meet.

Incorporating sustainable drainage systems (SuDS) into your projects can also minimise road runoff pollution and the impact on local water systems, protecting ecosystems and improving water quality by limiting water pollution. These measures ensure projects balance economic growth with environmental stewardship.

5. Lower the impact on local ecosystems

Indeed, reducing the negative effects of construction on local ecosystems is essential for preserving biodiversity and protecting natural habitats. For this purpose, construction companies should prioritise the use of low-impact and sustainable materials to minimise their environmental footprint.

Construction firms can also go a step further by restoring habitats affected by their projects. Strategies such as planting native vegetation, creating wildlife corridors, and designing green spaces can protect the physical environment while also fostering stronger relationships with local communities. To find out more about environmental standards and requirements the industry must meet, read guidance on nutrient neutrality and Biodiversity Net Gain.

How Keyline can help you reach your environmental goals

The path to sustainability is a complex journey, especially in our industry, where resource consumption is high, the stakes even higher, and solutions challenging to implement. However, adopting responsible practices across the supply chain and fostering collaboration can help construction businesses achieve their ESG goals and become more sustainable.

But if you want to hit ESG goals, you have to make sure your partners hold similar values. At Keyline, we are committed to sustainable leadership; we want to help our customers stay informed on the latest ESG requirements in construction, so they can easily measure their impact on the planet and make choices that better align with their goals.

Transparency is key. We source responsibly, track CO2 emissions of our deliveries, while also monitoring our vehicles, their speed, and performance with the latest route planning software to optimise operations – and by sharing this environmental data with our customers, they can accurately determine their impact, which is essential for meeting ESG criteria.  Also, importantly, we report on product-level carbon and have developed tools to support our customers with carbon reporting.

Working together for a greener construction industry

As a part of Travis Perkins plc, we are firm believers in the value of responsible sourcing. That's why we select quality products from approved suppliers to build more transparent, green, and resilient supply chains in construction.

To learn more about how Keyline can support your ESG efforts and pave the way for a more sustainable future in the construction industry, don't hesitate to get in touch. To find your local branch, click here!

To learn more about how to reduce environmental impact, you can read guidance on BREEAM Infrastructure and PAS 2080.