Ike Van der Putte FIDIC and UNEP-SBCI

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1 Ike Van der Putte FIDIC and UNEP-SBCI

2 Greening the Building Sector Supply Chain: Challenges and opportunities UNEP-SBCI Special Session FIDIC Centenary Conference Barcelona, Spain 18 September 2013 Ike Van der Putte, FIDIC and UNEP-SBCI

3 Greening the Building Sector Supply Chain The building sector can be called the industry of thirds : over a third of all CO2 emissions come from building construction and operations, over a third of all energy and material resources is used to build and operate buildings, and over a third of total waste results from construction and demolition activities. UNEP- Green Economy Report From 1900 to 2005: Total material extraction increased over that period by a factor of 8. The strongest increase can be observed for construction minerals, which grew by a factor 34 UNEP- Decoupling Natural Resource Use and Environmental Impacts from Economic Growth

4 The Global Impact of Buildings Environment 1/3 of global GHG emissions is from the building sector- the single largest contributor of emissions 40% of global energy use 40% of waste generated by volume 25% of global water usage 40% of global material resources 60% of world s electricity consumed in residential and commercial buildings Energy used for heating, cooling, ventilation lighting, plug loads, water production, etc. Growth regions: Africa, Asia, Middle East, and Latin America

5 The Global Impact of Buildings Economic Building sector represents 10% of global GDP- higher in some rapidly developing countries Employs more than 111 million people, including within the sector s supply chain More than $7 trillion in annual expenditures in the sector- expected to increase to $12 trillion by 2020 Nearly $100 trillion will be spent in construction sector over the next 10 years

6 The Global Impact of Buildings From , global material extraction increased by 41%. Extraction of construction minerals increased by 80%. As population continues to increase, no projections indicate a change in this upward trend

7 Suppliers represent a critical relationship between buildings and global resource use. They also are a key link across sectors (e.g. transport and energy) Greening the building sector supply chain will have a positive impact on other sectors

8 Sustainability in the Building Sector Achievements Best Practices developed in all regions High Performance Buildings Climate Benefits (Reductions in operational emissions) Incorporation of Renewable Energies in buildings (limited) Established Path to net-zero Buildings Focused attention on Carbon (embodied energy, LCA)

9 Sustainability in the Building Sector More Opportunities As building operational energy becomes more efficient, the embodied energy in materials, as a percentage, will trend upward; need to begin addressing opportunities to reduce construction material and resource use now Push best practices from end product and construction through entire supply chain Focus on Resource Efficiency- not just Energy and Carbon: Resource Consumption and Availability Sector impact on overall Waste, Water, Transport (carbon and resources) Benefits to local economies and sector enterprises (including SMEs)

10 SBCI Partnership Task Force on Greening Supply Chain UNEP-SBCI is a public-private partnership that works to promote sustainable building policies and practices worldwide, with a special focus on buildings and climate change. The initiative develops tools and strategies to support policymakers at local, regional and national levels. Goals of the Task Force: 1. Identify barriers and opportunities to embed greater resource and energy efficiency in the building sector supply chain, including material and water use, waste generation and transport; 2. Generally assess resource flows in the building sector supply chain, and identify potential actions and/or policies that may contribute to greater resource efficiency; 3. Provide recommendations for additional review or study, including the development of indicators, as appropriate, that may be needed to measure resource efficiency and performance in supply chain; 4. Identify and promote tools and strategies, such as Green or Sustainable Procurement which would positively impact the resource efficiency in the supply chain.

11 UNEP-SBCI Task Force on Greening Supply Chain Representatives from: SKANSKA FIDIC Royal Institution of Chartered Surveyors (RICS) ARUP SIEMENS World Green Building Council World Business Council for Sustainable Development Global Building Performance Network B+H Architects City of Mexico City Saint-Gobain Tsinghua University Brazil- Federal Ministry of Cities

12 Sustainability in the Building Sector Capitalize on Lessons Learned and Tools Developed, and apply them to Supply Chain Greater Awareness of Energy Efficiency and SB practices Industry Practices Design for EE; incorporation of technologies Construction practices (e.g. recycling and waste reduction, site management) Operations (EE practices, behaviours) Green Building Councils Market transformation Rating tools, benchmarking Local engagement Governments Regulatory instruments (labeling, EPDs, codes) Buildings in national climate strategies

13 Greening the Building Sector Supply Chain Key Actors Who is involved? Owners/Developers Regulators Designers Contractors Product Providers Material Extractors Transporters Operators/Users GBCs Financial Institutions Schools/Universities Barriers What prevents progress? Policy Frameworks (info/awareness, knowledge about benefits) Undefined responsibilities (owner, designer, contractor, etc.) Procurement requirements Fragmentation (trade separation) Risk distribution Lack of incentives Costs, Margins, Time Resource availability Hard and soft barriers Different benefits and measures of success throughout chain

14 Mapping the Building Sector Supply Chain- Where are the intervention points? Sub- Suppliers Supplier Contractor Spheres of Influence Designer Spheres of Influence Owner Spheres of Influence subcontractor Inceptio n Owner Requirements Developer Requirements Criteria Design Contract Designer Engineer Specifications Procurement Constr. Contract Contractor Site Construction Management Completion Commissioning Operations Design/Construction Process subcontractor Potential Policy/Action Intervention Points Material Transformation Recycling/Recovery DEMOLITION END OF LIFE Material Extraction

15 Greening the Building Sector Supply Chain Application of sustainability principles and assessment at each link (intervention point) of the supply chain: ENERGY-----CARBON-----WASTE-----WATER-----MATERIALS Identify institutional barriers and opportunities Identify and share best practices using comparative international case studies Identify reduction potential in resource consumption and broad goals for materials and waste, energy and carbon, water, transport Identify co-benefits of greening the supply chain Engage with sub-sectors to identify unique opportunities in supply chain links Identify areas for further study/research

16 Greening the Building Sector Supply Chain Some Key Questions: What are the shared and differentiated responsibilities for a project owner/developer, designer, contractor and product or materials provider? What are the common elements and distinctions in regional supply chains? To what extent can improved resource efficiency in the supply chain be influenced or driven by local and national planning regulations, mandatory and voluntary codes and targets? Where in the supply chain are the incentives for greater resource efficiency? Who benefits financially?

17 Greening the Building Sector Supply Chain What is the impact on time and cost? How can sustainable procurement help build resource efficiency in the sector? How is resource efficiency measured in the building sector supply chain? To whom is it reported, and what tools and indicators are available or needed? What is the potential impact (economic, social and environmental) of greening the building sector supply chain? Can greening the building sector have impact on other sectors? What is the impact on cities and local economies?

18 Greening the Building Sector Supply Chain Early Recommendations: Educate and build the capacity that would enable and empower professionals within the industry to green supply chains according to long-term goals; Develop more specific information and documentation on mapping the supply chain for different building types in different regions and identify the key leverage points. i.e. where in the supply chain greening efforts can be made and influenced by the right policies and programmes (e.g. eco labelling of materials); Support government through information sharing and advice to develop policies that drive or influence supply chain efficiency with planning, regulations, codes, standards and targets and identify; Measure and document the impact (economic, social and environmental) of a green building and construction supply chain. This will require the development of key indicators to help the measurement.

19 Identify and align with existing tools, initiatives CEN/TC 350, the European Committee for Standardization/Technical Committee Sustainability of construction works) supports the construction of sustainable works and is preparing standards for the measurement of embodied and operational impacts for whole buildings across the lifecycle. DuboCalc is a tool which has been provided by the Netherlands Government, Ministry of Infrastructure (2011) to measure the sustainability of a project at the design stage in an objective and standardised manner. The tool is spreadsheet based and can be used with the Prorail CO 2 Performance Ladder.

20 Identify and align with existing tools, initiatives In the construction sector, application of Public Procurement Guidelines can have a significant impact UNEP Sustainable Public Procurement Initiative EU Green Public Procurement

21 Greening the Building Sector Supply Chain Develop Practices, Policies and Tools for Supply Chain Broader application of Life Cycle principles in Building Design Design for EE and resource efficiency Local Sourcing of Materials Consider Natural Resources of Site (Solar, Wind, Water, Thermal, Geo-Thermal) Vernacular and passive designs Construction Green practices (e.g. recycling and waste reduction, site management) Green Procurement requirements to suppliers and upstream Operations Apply Resource Management principles to operations Suppliers Reduce material use (including packaging), waste, energy consumption in own and sub-supplier practices Governments Regulatory instruments (labeling, EPDs, codes) Buildings in national climate plans and Sustainable Consumption and Production strategies

22 Thank you

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