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Green, Sustainable, Profitable: why construction industry goes “green”

The development of sustainable construction is profitable for the environmental situation in the region, the company's reputation, and public health. The use of advanced building materials and resource accounting systems will significantly reduce costs, energy and water consumption, and CO2 emissions.
Building innovation is now focused on automation, IoT, blockchain
Building innovation is now focused on automation, IoT, blockchain
The global construction industry will reach $10.5 trillion by 2023
The global construction industry will reach $10.5 trillion by 2023
Construction industry goes “green”
Construction industry goes “green”
Companies need to meet the criteria of sustainable development
Companies need to meet the criteria of sustainable development
Over the past few years, the range of circumstances influencing the decision to buy real estate has expanded. People are increasingly concerned about the housing's operational characteristics, safety, and energy efficiency. In these conditions, construction companies must support sustainable technologies. Their use increases the cost of the construction but is paid off quickly by saving heat, water, electricity, and indirectly, by ensuring a healthier environment.

Buildings Turn Green
The global construction industry is foreseen to reach $10.5 trillion by 2023. According to the International Energy Agency, more than one-third of the world's energy and 28% of energy-related carbon emissions are used in the construction and operation of buildings. The World Environmental Council calls buildings a source of air, water, and soil pollution. As one of the effective ways to reduce the impact of construction on the environment, its experts suggest "green" construction.

Green construction refers to technologies that achieve three global goals:

  • Reduce emissions and waste during the production of building materials, in the construction process, as well as in the service of the building.

  • Reduce the use of electrical and thermal energy, water, and other consumption.

  • Increase the comfort for employees and residents, thus improving their efficiency and quality of life.


  • This type of building requires renewable and environmentally friendly resources like wood, fiberglass, recycled waste and scrap, and mineral wool. The latest trends are 3D printing, the use of bamboo, paper, recycled waste, new types of cement, and other eco-friendly construction materials. According to the BCG study, in 2019, new-type houses already accounted for between 4% and 6% of all new residential units. And the company believes that the popularity of futuristic forms of housing will continue to grow until 2030.
    Traceability and Control
    Construction innovation has recently been concentrated in the field of automation and information technology. For example, residential buildings are equipped with automated energy control units, individual heating units, energy-efficient LED lighting, and energy-saving windows. IoT sensors collect information and regulate the environment in the room in the most energy-efficient way. Applications, platforms, and cloud services are developed for construction services. Companies are developing and testing blockchain platforms for decentralized monitoring consumption of energy, water, and other resources. Blockchain improves information security, which is essential for independent control.

    For instance, the European companies TenneT and Sonnen have created decentralized home batteries connected to the blockchain network integrated into the power supply system. These batteries are designed to stabilize the power grid.
    The global construction industry will reach $10.5 trillion by 2023
    The global construction industry will reach $10.5 trillion by 2023
    Construction industry goes “green”
    Construction industry goes “green”
    Companies need to meet the criteria of sustainable development
    Companies need to meet the criteria of sustainable development
    Certification Becomes More Specific
    The level of compliance of a building with the requirements of ecological construction is defined by certification. BREEAM (EEEAS), LEED (Energy Efficient and Environmental Design Guidelines, USA), DGNB (German Sustainable Construction Council) standards are the most popular. Recently, the US WELL and FitWel have been added. It is a new type of certification, which also assesses the conditions for the health of residents. The addition of WELL and FitWel is due to the growing attention to the health and well-being of residents and renters, the development of the urban health concept, and the pandemic that instantly changed the world towards environmental, social, and economic aspects, green approaches, technologies, and certification.

    Eco-technology now includes means for improving resource efficiency, building materials, waste treatment, commercial properties of the building and the site, quality of air and water, light, heat, and sound comfort, as well as considering physical and mental psychological well-being, healthy nutrition, social connections, and communication.
    Market and Profits
    According to a study by Global Real Estate Sustainability Benchmark, green construction investment pays off entirely when the building is completed. The survey listed more than 55,000 buildings located around the world. Green construction technologies help to reduce resource charges and improve company reputation.

    The growth of investment costs for green construction can range from 1 to 20% depending on the class of the building being designed, the initial concept, and the desired level of certification. In addition, green buildings will attract more tenants and ensure sustainable incomes. According to the experts, the possibility of passing the certification according to one of the international standards of green construction leads to an increase in its capitalization by 7-10%.
    ESG is a Long-term Trend
    The popularity of eco-development will continue to grow due to environmental issues. Many governments set a target to reduce carbon emissions, with real estate accounting for up to 40% of their output. In the future, regulatory and tax requirements can be expected to be softer for green property and tougher for facilities that do not comply with the eco-development standards.
    ResearchAndMarkets predicts that the value of the world market of "green" non-residential real estate in 2023 will be estimated at $103 billion.

    Today, leading companies understand the importance of the ESG-agenda and are in the stage of restructuring their activities following the principles of environmental protection, social development, and reliable corporate governance. Companies are looking for ways to make the construction process and materials less toxic. It is crucial to keep in mind that inaction is a loss. By continuing to rely on energy-intensive construction and equipment, companies lose profits. The upgrade may require significant investment, but the delay is even more expensive.

    The rules of the market are changing rapidly: new CO2 emission requirements are likely to affect energy and construction costs. And bans or restrictions on non-environmentally friendly materials will create problems not only for construction companies but also for the entire production and maintenance chain.

    Companies need to meet the values of their brands, and many of them, along with employees and customers, are increasingly emphasizing the criteria of sustainable development.

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