This article is part of a blog series on construction 4.0 and embracing digitization, urbanization of emerging economies, and the changes it implies for the construction industry.

Global energy-related CO2 emissions grew by 1.1% in 2023, increasing 410 million tons (Mt) to reach a new record high of 37.4 billion tons (Gt), according to a report by the International Energy Agency. The construction industry accounts for more than one-third of global energy-related emissions.

The industry spent $2.8 trillion on energy in 2023. Over $1.7 trillion of which went to clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-to-end renewables and electrification. In 1994, due to the urgent need to reduce greenhouse gas emissions by 80%, the world set a goal to limit global warming to 1.5°C.

Construction companies must change their mindset about sustainability to reduce carbon emissions and energy consumption and generate profitable growth.

What could construction companies do to be effective for our planet?

Using green building techniques like renewable energy and recycled materials can improve sustainability. For example, to reach net zero by 2050, here is what the construction industry can do.

• Push companies and governments to fit insulation and air sealing methods to reduce energy consumption
• Install solar panels and geothermal systems to diminish construction’s carbon footprint
• Incorporate sustainable practices into every stage of the construction process.

Innovate new products and services to invest in clean energy like decarbonization.

Here are some initiatives governments have implemented to motivate companies in the industry to reduce their greenhouse gas emissions. They offer incentives and impose penalties to motivate the sector to build and operate sustainable buildings.

The European Commission (EC)

The strategy is to double the annual energy renovation rates of European Union (EU) buildings in the next 10 years.

The commission budgeted hundreds of billions in subsidies over the next five years for climate-friendly construction and renovation.

The twenty-seven European countries proposed climate law to boost demand for optimizing and modernizing the construction and operation of buildings.

The United States of America

In the $2.2 trillion Build Back Better spending framework announced in November 2021, $555 billion has been appropriated for clean energy investments.

The framework to encourage companies and consumers to go green offers tax credits, rebates, and other incentives.

CO2 emission reduction initiatives

The whole construction value chain considers where they can reduce CO2 emissions throughout the construction process and operations of the builds. Here are some ideas on how it could be done.

Product innovation

Find new materials and products like wood composites, to improve or substitute for conventional materials and products such as steel and concrete.

For instance, wood composites have a higher load-carrying capacity than traditional materials. They are less heavy, have lower electrical conductivity, and are heat resistant.

Wood offers a higher insulation rating, making it more energy efficient. It is sustainable as it can be regrown and reduces CO2 emissions by 15% to 30%.

Process efficiency

To decrease carbon emissions during the design and planning phase, architects and planners look for:

• low energy operational consumption solutions like the disassembly of a building, adaptability to new methodologies, and flexibility of construction type
• less CO2-intensive materials, and sourcing standardized, local materials, with a long lifespan.

During the construction and in-use phases, the industry is looking for:

• suppliers who use modern technologies to reduce fossil fuel consumption and, when possible, move to renewable energies
• distributors who optimize transportation movements.

Whilst streamlining their operations, building contractors decrease fuel consumption by using innovative technologies and leveraging data management systems.

Waste management

In the construction industry, it is well known that unused construction materials are often wasted material. If contractors were reusing or recycling the waste, it would significantly reduce the amount ending in landfill. For example, damaged timber could be reused as a wood flooring material, reducing CO2 through circular models.

The construction and demolition waste management market is set to grow to $271.68 billion in 2028, thanks to construction firms finding innovative ways to reduce their contribution to the pileup.

Methodologies like lean construction and value engineering help at the planning stages to reduce waste.

During construction and demolition, services can provide waste removal and disposal solutions.

Platforms and ecosystems

To access recent technologies, share business models and talent, and reduce investments, companies in the construction industry form legal or informal partnerships to accelerate emission reductions.

These partnerships create great opportunities for these companies to generate profitable growth, and differentiate themselves in the market using decarbonization strategies.

Technology improves construction sustainability and profitability

Using technology helps construction companies to be more sustainable and profitable by making it easier to choose green materials and use less energy.

Risk must be evaluated before implementing modern technologies. Below are some examples:

#### BIM modeling Sichuan road and bridge

Sichuan Province, southwestern China, wanted to develop the Chengdu-Yibin Expressway a smart construction initiative that aimed to be a modern road hub, ecological, and accessible.

The brief to the Sichuan Road and Bridge (SRB) company was:

• a budget of 24.6 billion yuan
• create a smart highway integrating artificial intelligence and a cooperative system of vehicle infrastructure in the construction
• complete the construction within three years
• the highway will span over 155 kilometers
• it will have 154 bridges that total 39.7 kilometers and include four tunnels that cover 7.3 kilometers
• 17 grade-interchanges and five service areas along the route.

The planning process was difficult due to the lengthy and complex construction of the bridges, resource allocation issues, coordination problems amongst dozens of subcontractors, construction planning, and management.

Using BIM methodology and reality modeling, SRB could use 3D models for digital inspection and simulation which:

• identified more than 103 potential design issues
• saved 4.5 million yuan in costs associated with construction site changes
• solved more than 14 potential line-of-sight problems
• saved 7 million yuan in construction costs
• reduced the entire construction period by 124 days, thus saving 6 million yuan in production costs
• improved process efficiencies by more than 50%, production efficiency by more than 20%, and modeling efficiency by 15%.

They also were able to reduce the land acquisition period and the environmental impact of the project.

Offsite construction and 3D modeling

Offsite Construction and BIM have many benefits, including time and labor savings, improved predictability, high sustainability, enhanced safety, and quality.

Nick Milestone, Operations Director at Sigmat claims they have embedded Sig-Dek, their decking profile product, into the Tekla BIM library. He said:

Having access to this product further enhances levels of accuracy. Achieving this level of accuracy in virtual design and construction (VDC) processes allows Sigmat to achieve zero waste with offsite construction. Additionally, the correct material quantities are always ordered thanks to automatic quantity take-offs, and no rework is required due to detailing or fabrication errors.

Sigmat claims that they now have accurate BIM models, perfect construction installation, no rework is required, and no waste is produced

Benefits of technology in construction sustainability

Combining automation and technologies like robotics, smart building materials, the Internet of Things (IoT) for data collection, and artificial intelligence for analysis, construction companies can reduce waste, increase safety, improve efficiency, find new, and more efficient ways of constructing, get higher profitability, be more effective and environmentally friendly.

For instance, using predictive analytics tools allows companies to identify potential risks in a project, eliminate design errors, avoid costly reworks, and reduce waste.

Challenges to implementing sustainable technologies in construction projects

Implementing sustainable technologies presents challenges like high investment costs, acquiring new knowledge, and regulatory obstacles.

How can you overcome these challenges?

Return on investment

The long-term savings will deliver a high return on investment by reducing energy bills, increasing durability, and identifying potential subsidies from local or national governments.

Acquire the right knowledge

Automation and robotics require different skills that can be acquired by investing in staff training, hiring people experienced in green building techniques, and incentivizing employees to get new skills using a reward system.

Regulatory issues

Artificial intelligence developments bring new technological solutions to the construction industry to improve worksite efficiency, data quality, and overall innovation that carries legal risks that must be investigated, evaluated, and addressed before implementing these solutions.

Is investing in sustainable technologies worth it?

Investing in sustainable technologies can result in long-term cost savings, such as improved insulation and windows, or using renewable energy sources like solar panels and wind turbines to generate power. These can help businesses significantly reduce their energy bills and reliance on traditional utilities.

Innovation in products and services drives decarbonization

Innovative construction companies partner with universities to develop products and services to help their clients, building owners, and operators, reduce carbon emissions and energy consumption to reach net zero carbon construction, and implement decarbonization solutions generating profitable growth.

Innovations can involve energy-efficient systems like heating, ventilation, air conditioning (HVAC), lighting, plumbing, and building envelopes (walls, windows, roofs, and insulation).

Automation and system integration using cloud platforms and business model innovations combined with holistic services and solutions will improve a building’s operational performance and enhance the users' comfort.

A certification, like LEED, to prove energy conservation awareness of the construction is available for both new building construction and existing buildings and spaces.

Investing in efficient technology

Automated bulldozers and excavators or robotic arms for construction projects can reduce fuel consumption and lower emissions, reducing carbon footprint over time.

For Example, the prototype Automated Tunnel Robotic Installation System-[ATRIS] selects brackets, locates where they need to be mounted along a tunnel wall, and installs them. ATRIS will be deployed in tunnel construction for various sectors including transport, water, and energy.

ATRIS will increase productivity by 40% due to faster installation, reduce installation costs for mechanical and electrical (M&E) systems by 30%, and cut carbon emissions by 40%.

Renewable energy sources like solar power for lighting and machinery can decrease reliance on fossil fuels. These initiatives could help:

• improve your company’s public perception by prioritizing environmental responsibility when purchasing, increasing loyalty to your brand and customer retention rates
• enhance the sustainability and profitability of construction by reducing waste and improving energy efficiency
• streamline processes, for example, monitoring usage and tracking product lifecycles to reduce consumption of non-renewable resources, reducing emissions and environmental impacts.

In conclusion

Introducing automation and digitization in your company can improve efficiency, accuracy, safety, profitability, and sustainability. By using technologies such as:

• BIM – you could improve 3D visualization
• Robotics and wearables – you could be more precise and improve security through real-time data collection.
• Drones – you could provide an aerial view of the construction site for effective resource planning and surveying.

Construction industry technology helps to build a better tomorrow, strengthening efficiency and safety.

To speed up project completion and improve quality control measures, you can use internet platforms to streamline your project management.

Robotics and automated equipment can mitigate risks and improve accuracy. Drones can provide detailed aerial surveys, to identify potential issues and improve your quality control measures.

Achieving net zero by 2050 will give the construction companies that reach that goal a significant competitive advantage. Do not wait to develop strategies and business models that get your clients one step closer to achieving that ambitious goal.

All you must do is make the wise decision to invest in technology to improve sustainability and profitability, yield costs and environmental savings, and increase efficiency while reducing your generated carbon footprint for years.

Driving Vision's technology appraisal looks at the best way to insert innovative technology in your workflows and how to move your organization to cloud computing so you can open new possibilities for your daily planning tasks and make sure your data never leaves the optimally secured data center.

A Driving Vision expert will conduct the interviews online, issue a report, and discuss our findings with you. Together we can decide the best way to implement the solutions at your pace and according to your budget.

Implementing BIM can be daunting, but Driving Vision is here to help you at the pace you are comfortable with. Get started by getting in touch now