How scarcity of raw materials persuaded a construction company to switch to eco-friendly building materials?

To adapt to the myriad challenges of today, a construction company aimed to address environmental concerns. However, a lack of knowledge and improper investment strategies made it difficult for the company to turn its aim into action. The company turned to Research Nester to help find a solution to support its continued growth.

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An overview:

1

Due to the diminishing availability of natural resources and its negative impact on the environment a construction company from the United States wanted to considerably reduce the effect of its activities by improving its production process and reducing the quantity of virgin raw materials.

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The company aimed to set a new environmental goal for 2030 by setting a target to reduce greenhouse gas emissions by 35%. In addition, The Company also realized a need to measure its socio-economic footprint to strengthen its regional social cohesion.

3

Research Nester, by using its industry analysis model, performed an environmental, social, and governance analysis built an investment plan, and introduced a new environmental ambition, to take into account all potential problems, including human rights, health and safety, or the environment.

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The Story

Sustainability has become more and more popular in the construction sector across the globe since it may have a significant impact on the environment and its clients. According to estimates, over 35% of global carbon emissions are produced by the building industry. Research Nester’s team observed that during the year 2022, many construction companies had incurred huge losses post-pandemic owing to the lack of raw materials. The companies were also unable to address environmental issues and had to face criticism for their carbon emissions. Our estimates suggest that within the next few years, the world's demand will reach over 40 billion tonnes which would result in disrupted supply chains, scarcity of raw materials, and rising wages in the construction business.

Lately, the client’s company experienced the need to enhance efficiency and reduce greenhouse gas emissions by switching towards green materials, it requested Research Nester to find out a solution for the problem, and help the organization overcome the following challenges:

  • Lack of investment strategy in energy efficiency areas
  • The difficulty faced while finding a reliable and consistent supply of eco-friendly materials
  • The dearth of expertise in the proper utilization of sustainable raw materials

The Solution:

Research Nester used its industry analysis model, to comprehend the current situation of the client's business and the potential opportunities presented for the company if it switches to employing environmentally friendly products. The analysis helped our team to understand that over time, numerous sectors and areas have effectively adopted green technologies, and the majority of governments have enacted legislation to improve construction sustainability. Our experts conducted extensive research to identify a reliable eco-friendly supplier and suggested the client establish long-term collaborations with industry associations. In addition, the construction company was asked to invest in training programs to educate the employees on the utilization of green building materials. All of these contributed to an increase in energy efficiency and a reduction of the overall cost. Below mentioned are a few of the critical areas wherein our client was requested to enhance its focus were:

  • We suggested our client involve in sustainable certification programs including Leadership in Energy and Environmental Design (LEED)
  • Increase the recycling rate, and adapt infrastructure which helps in adhering to environmental guidelines
  • Investment in energy-saving measures
  • To educate its staff, and partners on the best practices to be used
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Results

1

By introducing new environmental goals and suggestions for investing in different saving measures, the company was able to reduce around 55,000 MWh, which lowered greenhouse emissions by over 20% in CY2023. The company made structural changes to reach this target decrease and completely committed to the environmental transition strategy by consuming primarily sustainable materials and items that have been previously used or recycled.

2

The company was successfully able to use eco-friendly approaches by implementing plans to reduce wastage which helped to raise the aggregate recycling rate to 70% from 40% in 2021 and generate over 45% of revenue.

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Swara Keni

Head- Global Business Development

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