Excerpt from MEM study report Towards broader implementation of corporate sustainability and sustainability reporting in the construction

industry in Singapore by Kaia Margit Davis Tan

National University of Singapore, 9 December 2013

Ten suggested sustainability issues relevant to the construction industry in Singapore

A good starting point for companies that wish to address sustainability impacts of their business activities is to communicate with stakeholders and identify what is material to the company. Different companies are likely to address overlapping issues, such as greenhouse gas emissions, human rights, decent labour practices and anti-corruption, and in addition, establish distinct focus areas. Here, we suggest ten key sustainability issues that are relevant for the construction industry in Singapore. These are areas where the industry has social and environmental impacts and require attention for potential improvements. The ten sustainability issues are based on literature review, track record of the construction industry in Singapore, aspiration of construction company leaders in the industry, focus areas of construction companies leading in sustainability, Singapore laws, regulations, codes and guidelines, and internationally recognised frameworks such as UN Global Compact and GRI indicators for sustainability reporting in the construction and real-estate sector. Each sustainability issue is important in its own right and they have therefore not been ranked.

Safety and Health Focus on workplace safety and health is long overdue considering Singapores poor track record in this area, however, promising results have shown a reduction in fatality rates from 4.9 per 100,000 workers in 2004 to 2.2 per 100,000 workers in 20101. The target should be zero accidents, as has been pledged by several companies in the construction industry. The government is

Parliamentary Debates, 6 March 2008

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

increasing its attention on safety and health at workplaces in Singapore and has recently amended the Workplace Safety and Health Act (WHSA) in 2011 to cover all workplaces, an extension from the first version which only applied to highrisk industries such as factories, construction and shipyards (Ang 2012). The objective of the Workplace Safety and Health regulatory framework is to eliminate or minimise risks of accidents at the source. Management and directors of companies are held accountable for the safety and health of their workers at the workplace and poor safety management and performance is discouraged with higher penalties (Ang 2012). There are several incentives for companies in the construction industry to implement effective management systems and uphold impeccable workplace safety and health records. Accidents have a profoundly negative effect on companies. Maintaining healthy workers and a safe working environment can improve the productivity, enhance a companys reputation and provide stronger position to win contracts and meet clients demands. The company is also likely to have a lower risk of legal liabilities and paying out compensations, and may save cost from reduced insurance premiums and less disruptions of work. However, there are challenges in implementing workplace safety and health management systems. Projects often have tight schedules to finish on time. Low educational levels, lack of training or low compliance from workers can also pose problems. The first step to develop a safety culture is to report and investigate accidents and incidents. Furthermore, communication between workers and managers is a prerequisite when addressing safety and health problems, together with mutual understanding, trust and openness (Clarke 1999). The construction industry is characterised by its distinct projects that rely on contractors and subcontractors. Thus, developers, architects, construction companies and engineers should put in place selection criteria which ensure that contractors and subcontractors meet the requirements of their workplace safety and health policies.

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

Wellness of workers Workplace wellness programs can improve employees physical and mental health, and reduce the number of employees that smoke, have high blood pressure or who are physically inactive. There are significant gains from investing in employees wellness and work-life harmony, which results in a healthier and more productive workforce and savings on health-care costs, reduced absenteeism cost. Moreover, employees that take part in wellness programs are less likely to leave the company (Berry, Mirabito et al. 2010). Creating a culture of health in a company takes time and requires persistent and convincing leadership, as with other sustainability initiatives. The Singapore Health Promotion Board offers grants, programmes, best practices awards and workplace health packages companies and health facilitators. Wellness programs encompass programs targeted at healthier employees, e.g. exercise programs, stress management and healthy eating habits, programs targeted at high-risk employees, e.g. hypertension screening and smoking cessation programs, and programs targeted at individuals with existing health problems such as diabetes or depression. The latter programs promotes treatment compliance and special needs (Ang 2012). In the construction industry, workplace wellness programs should include construction workers where wellness programs accommodate their specific needs, in particular physical and mental well-being, adequate rest, appropriate housing and healthy eating.

Energy and resource conservation, Waste reduction and recycling The Earths natural capital is being depleted and there is evidence of water and energy scarcity. Current energy and resource use is contributing to environmental degradation and climate change. The cost of fuel is rising due to strong global demand, limited capacity in oil production and political instability2. The construction industry depends on landfills for the vast amounts of waste that is generated. It is therefore important for land-scarce Singapore to find solutions to this problem.
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http://www.caltex.com/sg/resources/determining-fuel-prices/

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

There are several ways in which construction companies can participate in resource conservation and waste management, such as pursue sustainable procurement, selecting wood products from sustainably managed forests and other sources than tropical forests, use metal forms instead of timber formwork, adopt sustainable construction, perform Environmental Impact Analyses and Life Cycle Analyses, increase recycling and use pre-fabricated components. Existing government incentives offer funding for energy efficiency assessments, rebates of up to 100% of the cost of energy efficient technologies, training grants and cash incentives under the Green Mark Incentive Scheme3. Companies can save cost by becoming more energy efficient and reduce waste to landfill. For example, the first 40% of energy savings are often easy and cheap to implement (Aguiriano 2012). However, companies may face challenges due to a lack or constraints of renewable energy technologies, slow payback time for new technology investments, high initial capital cost and long lead times. Also, the availability of high quality, time-tested environmentally friendly materials may be limited. This should not deter companies from exploring opportunities in energy, resource conservation and waste management, seeing that the long-term benefits are likely to outweigh the challenges and risks.

Sustainable procurement The objective of sustainable procurement is for companies to buy environmentally friendly goods and services from environmentally and socially responsible suppliers. Leading companies are experiencing that their company is only as safe, ethical and green as its supply chain (Skanska 2010). In the construction industry, much of a companys revenue flows through the supply chain and it also plays a key role in selection of materials. Therefore, supply chain management is of strategic importance. The first step is to build databases of what constitute environmentally friendly goods and services as well as environmentally and socially responsible suppliers, then determine who meets those criteria in the companys supply base. However, there is a compromise between having a procurement policy that
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http://www.e2singapore.gov.sg/incentives.html

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

covers all goods and services in every country from small to large suppliers, and the need to give buyers and managers the tools to understand and meet the procurement policy. Thus, there is a need to train buyers and managers so they can fully understand the companys sustainable procurement policy, and to provide the necessary resources so buyers and managers can engage stakeholders, such as NGOs, which may be of assistance. Sustainable suppliers can be identified using surveys, although it is important to note that suppliers may have to handle many such surveys from other companies and that they present self reporting data, which need backing up from publicly available information. Ideally, important suppliers who dont meet the criteria should be presented with both incentives and penalties. The company should also consider alternative suppliers, and how others in the industry are performing. Sustainable procurement may be challenging for companies that are in the initial stages of adopting corporate sustainability and sustainability reporting, since their focus often is on activities within the boundaries of the company. However, the risks present in the supply chain should not be neglected in the successive process.

Pollution prevention The construction industry contributes to noise pollution, air pollution and water pollution. Noise pollution stems from piling machines, heavy vehicles and concrete pumps, whereas the most common air pollution to cause annoyance is dust. However, the construction industry is also responsible for greenhouse gas emissions and water pollution, mostly from silt discharges, cement slurry and oil based products. Hydraulic oil, which is used in majority of tracked earthmoving machinery, is a particularly aggressive pollutant when discharged near watercourses (Morledge and Jackson 2001). An environmentally friendly alternative fuel is biodegradable hydraulic oil, although it is more expensive. Contractors can also explore on-site green techniques to reduce air, water and noise pollution. These techniques provide simple and cheap solutions to pollution problems in construction that result from the creativity of workers on site and do not require sophisticated technology (Teo 1999). Developers and

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

construction companies should shift focus from end-of-pipe pollution clean up to prevention of pollution at the source. By minimising risks of pollution, companies can avoid accidents, fines and legal liabilities, which could damage their reputation.

Biodiversity conservation, Heritage conservation Singapore is located in the heart of the Indo-Malayan rainforest, which is one of the three last remaining rainforests in the world, and have a rich biodiversity despite its small size. There are more than 2000 native, vascular plant species, 57 mammal species and close to 400 bird species4. Majority of the original natural habitats have disappeared due to the development of Singapore into a densely populated city. However, the remaining natural habitats are important locations for plant species, wildlife and migratory birds along the major migratory route, the East Asian Flyway. Construction projects for housing, commercial buildings or infrastructure may have destructive impacts on these natural habitats and biodiversity. The government has therefore legally protected some of the fragile and vital indigenous ecosystems, such as the lowland dipterocarp forest in Bukit Timah Nature Reserve, the Central Catchment Nature Reserve and the ASEAN Heritage Park, Sungei Buloh Wetland Reserve (NParks 2009). Along with natural heritage, Singapore also has rich architectural heritage and important historical landmarks. Its distinctive shophouses, black and white colonial bungalows, temples, mosques, national monuments, rural villages (kampung) such as in Pulau Ubin and even Heritage Trees are part of Singapores heritage. The public is increasingly engaged in protecting these natural and cultural heritage sites, as illustrated by the recent example of Bukit Brown Cemetery. In a fast changing and developing country such as Singapore, it is important to integrate preservation of national heritage sites into the urban planning processes. Developers and construction companies can do their part to protect natural habitats and heritage sites by implementing environmental impact assessments, addressing ecological features on sites,
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protect animal and plant species and other safeguarding procedures. Consultants, ecologists, NGOs and other relevant stakeholders should be engaged throughout the process. Synergetic preservation efforts by the public and private are needed to ensure that future generation can enjoy the rich biodiversity and historical heritage of Singapore.

Stakeholder engagement An organisation has the potential through corporate sustainability to give stakeholders the opportunity to make a powerful difference in the world or in their communities. The stakeholders roles are in the connection between a companys commitments, the companys impacts and the people within that company. Stakeholder engagement is a systematic approach of how the company connects to stakeholders and attain a mutual understanding. Factors such as what the value systems of the company are, what kind of clients the company is catering to and what the companys rivals are doing should be included into the design of the corporate sustainability initiatives. Here, stakeholder engagement may highlight gaps and impacts that the company needs to advance environmental, social and economic progress and also provide the tools to solve these issues. Stakeholder engagement creates a platform for sharing of best practices. The first level of stakeholder engagement is centred around the sustainability performance of the company and how the company reports their performance, then the stakeholder engagement moves up to a level where trust is built between the company and the stakeholders. Finally, partnerships are formed between stakeholders and the company that open up new opportunities. Moreover, engagement can help companies understand why some stakeholders are not talking to each other, and what can be done to encourage dialogue. This is particularly important in the planning stages of new projects with impacts on local communities. Thus, the benefit of stakeholder engagement is not solely for the company, but also for clients, communities and the causes supported by the company.

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

Community Outreach Construction and real-estate companies have impacts on local communities, both during and after projects, and can benefit from a continuous dialogue with the people who are affected by their projects. In countries where they operate, companies can support the community by employing and educating locals, without discriminating against people with disabilities, elderly or ex-offenders. Employees may get a sense of pride that their company is giving back to the society and be encouraged to engage in supporting the less fortunate, charities or local artists. Companies that pursue corporate social responsibility are attractive for candidates that want to be part of an organisation that connects them with the community and delivers solutions. Thus, the work environment relates to the person as a whole and not just to their professional ambitions and skills.

Limitations and further research

This study is a comprehensive and analytical survey of literature, thus additional research with quantitative data and surveys would further expand and support our findings. There is limited data on the financial cost of internalising externalities of business activities and quantifying gains from corporate sustainability still poses a challenge. The construction industry consists of a wide range of smaller to larger multinational companies with different business undertakings, therefore more research should be done that target various groups of similar companies to dissect what is relevant and applicable to them. Further research would benefit from surveys of current trends in awareness and attitudes towards corporate sustainability, sustainability reporting and the incentives and challenges in implementing these business approaches. There is also a need to continuously update technological progress in sustainable construction and to quantify the environmental impacts of the built environment with life cycle analyses and other tools.

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore

References Aguiriano, J. G. (2012). Sustainability in Practice, DuPont Sustainability Solutions. Singapore, 14th Asia Pacific Confederation of Chemical Engineering Congress,. Ang, S. C. (2012). Exploring the role of organisational wellness inbuilding a safety culture in workplaces. NUS Business School. NUS, SIngapore, National University of Singapore. Bachelor of Business Administration (Honours). Berry, L. L., A. M. Mirabito, et al. (2010). "Whats the Hard Return on Employee Wellness Programs?" Harvard business review 88(12): 104-112. Clarke, S. (1999). "Perceptions of organizational safety: implications for the development of safety culture." Journal of Organizational Behavior 20(2): 185198. Morledge, R. and F. Jackson (2001). "Reducing environmental pollution caused by construction plant." Environmental Management and Health 12(2): 191-206. NParks (2009). Conserving our Biodiversity: Singapore's National Biodiversity Strategy and Action Plan. N. P. Board. Singapore, National Biodiversity Centre. Skanska (2010). Skanska Annual Report 2010: Sustainable Development. Sweden. Teo, L. L. A. (1999). Green techniques on site: a step towards sustainable construction. Building. Singapore, National University of Singapore. B.Sc. (Building).

Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the construction industry in Singapore