UNGC Case Study. Skanska Cooper River Bridge Project

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1 UNGC Case Study Skanska Cooper River Bridge Project About the United Nations Global Compact (UNGC) The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption. The Environmental Stewardship Strategy (ESS) represents one key initiative of the UNGC that is designed to help companies - at the highest levels of the organization - develop a truly holistic and comprehensive environmental strategy. The UNGC ESS promotes the dissemination of tools, methodologies and case studies to support businesses in integrating environmental, social, and development priorities represented the 10th anniversary of the UNGC and was also the International Year of Biodiversity. Duke University in collaboration with the UNGC has accordingly developed a strategic business continuum (see image) and a repository of best practice tools and case studies to advance environmental stewardship strategies. This case study profiles the Cooper River Bridge project of Skanska, a global leader in strategic environmental stewardship. We wish to thank Eva-Lena Carlén-Johansson, Manager Sustainability Projects, for supporting the development of this profile. About Skanska AB Skanska is a leading international project development and construction company that develops commercial buildings such as offices, homes, and infrastructure projects such as schools and roads. Skanska creates sustainable solutions. Its 2015 Ambition is to be the leader in its sector in people development, green business, work site safety, business ethics and risk management. Skanska operates across Europe, the US, and Latin America. Skanska has been a member of the UNGC since 2001 and is an active member of the UNGC Nordic Network. 1

2 Skanska s Environmental Stewardship Commitment What factors were important in Skanska s decision to commit to environmental stewardship and how did this correspond to Skanska s long term strategies? Skanska has identified seven high-level priority areas as part of their environmental strategy for : Brand, Leadership, Competency, Energy, Carbon, Materials and Water. Skanska is on a Journey to Deep Green that is intended to shift the built environment beyond basic compliance. Skanska has been actively providing Green Solutions to its clients to help reduce their energy usage and overall carbon emissions, in addition to providing advice on materials that are sustainable and lack hazardous content, and achieving reduction of waste as well as a responsible use of water. How have environmental priorities been defined by Skanska? Skanska has adopted the Global Reporting Initiative (GRI) framework and their environmental priorities have focused on operations with the largest impact. The environmental strategy of Skanska is defined by the most senior environmental managers in Skanska (Expert Group EPN), endorsed by the Senior Executive Team (SET) and championed by the Skanska AB Group Staff Unit Sustainability and Green Support. The current Skanska Business Plan for the years include an Environmental Strategy that includes Green Strategic Indicators (GSIs) that define the high level priorities of the organization. In 2010 Skanska diverted 88% of its waste from landfills and by the end of 2015 it is targeting zero waste to landfill. Skanska supports the European Network of Construction Companies for Research and Development (ENCORD) efforts to standardize environmental and social reporting indicators across the construction industry. Biodiversity is a prioritized area in Skanska s Environmental Policy that emphasizes the need to mitigate the impact of operations on flora, fauna, and related ecosystems. As part of Skanska s Journey to Deep Green initiative, The Color Palette has been developed as a strategic framework for green business and to objectively measure the environmental impact of projects. Each project is evaluated in accordance with four categories, Energy, Carbon, Materials and Water, and three levels, Vanilla (in compliance with law, regulations, codes, and standards), Green (beyond compliance, but not considered to have near-zero impact) and Deep Green (near-zero impact on the environment). For all categories stepping stones across the green zone exist to further facilitate measurement and communications. All Skanska Business Units have used the Color Palette to set and agree targets for the 2

3 Profitable Growth Business Plan and support functions are steering their developments accordingly. How is environmental stewardship communicated and implemented across Skanska? Skanska internally communicates its environmental priorities by utilizing the OneSkanska intranet and the Environmental Performance Network (Expert Group EPN). The EPN consists of senior environmental directors that, among other things, are responsible for cascading information to their business units. Each business unit is required to adopt and integrate the corporate Environmental Policy, Strategy, and GSIs as part of their own Business Unit Business Plans. Each Business Unit reports their environmental progress to the Corporate center. In 2000 Skanska was the first construction company to certify all their business units in accordance with the ISO Environmental Management System. Skanska issues an annual Sustainability Review, updates their environmental progress on the corporate website, and publishes leading reports such as Green Thinking and Green Urban Development. What strategies are used to maintain top-level attention on environmental execution issues? Skanska has adopted five zeros as part of their core values: zero loss-making projects, zero work site accidents, zero ethical breaches, zero defects, and zero environmental incidents. In the Vision of Skanska for 2015, it points out, We are a recognized market leader in Green. It is explained as: The demand for green solutions is ever-growing. We are determined to drive the development in our industries and make good business out of it. We are on the right track; what we need to do is to make use of our combined experience and market our green expertise. The Senior Executive Team (SET) keeps up-to-date through quarterly reports from the Business Units (BU) on their green strategic plan in the BU Business Plan for The top 1% of Skanska managers (some individuals) are updated on major developments at the annual Management Meeting and Business Unit Presidents are involved directly with the SET every six months. Skanska Project Profile Cooper River Bridge The UN has recently focused on biodiversity; calling 2011 the beginning of the Decade of Biodiversity and helping the Convention on Biological Diversity (CBD) adopt the Nagoya Protocol. The Cooper River Bridge project is an excellent example of Skanska strategically committing to sustainable development, one of the CBD s three main goals, and biodiversity protection. The Cooper River Bridge, South Carolina, U.S.A., was constructed to replace two obsolete bridges over the Cooper River and strived to benefit surrounding communities, the local economy, and protect and enhance wetland environments. In addition to several important social and economic aspects, such as convening stakeholder dialogue and using local construction suppliers and materials, Skanska focused on many environmental aspects, including supporting areas of biodiversity. 3

4 PBC Construction and South Carolina Department of Transportation (SCDOT) environmental specialists conducted inspections throughout the project, and environmental impacts during construction were minimized through a range of measures. Best management practices ensured that routines were followed for controlling site runoff, disposing of waste, and protecting the environment in the event of accidental spillages or leaks. To minimize river impacts all hydraulic systems that operated near water used biodegradable oil, protective curtains confined water disturbance from excavations, and temporary platforms were constructed to limit permanent impacts to less than 0.32 hectares of wetlands and temporary disturbances to 2 hectares. Noise minimization methods were used to diffract, absorb, and reflect noise from construction activities. The following are five examples of construction best practices Skanska adopted to minimize their environmental impacts and, in some cases, improve the environment for local species. Environmental design: Models and simulations were used to assess how specific bridge design features would influence natural systems in the Charleston estuary, with the aim of minimizing environmental disturbance. Wetland restoration: Following the construction of the bridge, disturbed wetlands were restored to their natural condition and sections of the old bridges were excavated and rehabilitated to wetlands. If original areas could not be restored, SCDOT allocated mitigation banks to compensate. Artificial reef creation: Over 80 percent of the material from the demolished bridges was used to create artificial reefs near Charleston and along the South Carolina coast. Tree relocations: Around 20 mature trees affected by the project were relocated to Charleston and Mount Pleasant at the request of local people. Minimizing habitat disturbance: Bridge lighting was designed to minimize potential impacts on nesting loggerhead sea turtles and migratory birds, as animal experts feared that lighting could disturb animal habitats. Bridge lights are turned off at night during the turtle-nesting season in order to reduce disturbance. Future Leadership Skanska s Journey to Deep Green In a Deep Green Society, assets and facilities are future-proofed by the improvement of energy efficiency and materials use and the reduction of carbon emissions and water consumption. Deep Green 4

5 can be measured in zeros. Net zero primary energy, zero waste, zero hazardous materials, zero unsustainable materials, net zero water use, and near zero carbon construction. Today vanilla cities and buildings are the norm they will get the job done at a low capital cost. However, there are also examples of green construction and development in many places around the world. While existing green projects may meet today s requirements, they will not be good enough tomorrow. It is a moving target and Skanska is pushing each of its projects as far towards the Deep Green zone as economically possible. Buildings and infrastructure can be designed and built in a way that reduces their impact. Life Cycle Costing proves that a slightly larger investment today yields even greater cost savings over time, particularly as cost of energy, water, and waste disposal rise, while technology continually advances. Thinking in lifecycles instead of here and now makes Skanska and its clients look at function, environmental consequences, and cost, spread over a building or development s lifetime. The Solutions Are Already Here The commercial office, Linthulahti in Helsinki, is the first Finnish and (European) office to receive LEED Platinum CS (Core and Shell) certification. It is an energy efficient office block, supplied with renewable electricity and efficient district heating and cooling. The development has contributed towards sustainable urban planning and promoted urban redevelopment by reusing a contaminated brownfield site. It is registered with the European Union s Green Building Programme. The Skanska Journey to Deep Green is moving on with new interesting projects. For more information go to The UN report providing Skanska Communication on Progress (COP) can be found at 5