RESEARCH MANAGEMENT REPORT

ENVIRONMENTAL SUSTAINABILITY WITHIN THE CONSTRUCTION INDUSTRY

EVANDER XAVIER 17229470 WEEK 6, COMMENCING 5TH SEPTEMBER 2011 (06-09-2011)

MANAGEMENT FOUNDATIONS CONSTRUCTION

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Executive Summary
Sustainability in general is a topic widely ranged in many areas of study. In construction, the term sustainability can be linked to its general definition that the ability of humanity to ensure it meets the needs of the present, without compromising the ability of future generations to meet their own needs.

In the construction industry, sustainability would play a vital role. It is now emerging among many multi-million dollar corporations and small construction companies, as a priority and an compulsory, important key factor. The need to enforce the Implementations of sustainability has risen over the past years, due to the development of our environment.

Sustainability in the construction industry can be divided into the main categories that they have an impact on. These include, waste managing, air and noise pollution and effective energy usage. These categories in the construction industry are the ones that will need to be changed in order to bring forth sustainable building. An example of how to start with sustainable thinking is developing sustainable strategy and waste minimisation plans. Also by developing sustainable ideas for ways in performing tasks, in this case, involving the way waste is managed how air pollution is reduced.

A simple example of the way sustainable change can effect an entity, is through the way waste management is handled within the construction industry. It can be changed, to develop a sustainable way of building. By using less material, cutting to perfect size, and also by using recyclable materials, construction becomes more environmental, and there is also major decrease in wastage.

By performing these sustainable acts when constructing, there are many implications that will arise positively and negatively as an outcome to these actions. These outcomes include economic factors and managerial changes which will lead to individual behavioural changes. An economic change involves the cost risk. There will be a broad new range of costs to develop into

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using sustainable practises, new costs for any new sustainable developing, and also if there are requirements to comply with environmental requirements. Economic changes will also effect the long term positively, as profitability will increase due to the change and efficiency of the business.

Behavioural change will include the individual and organisation adapting to new sustainable methods and being able to appropriately practise them in their new sustainable environment. These are brief implementations of what these changes can do, let alone the major change of contributing to the wellness of the environment.

Investigations into greenwashing have shown that it is not the best way for a business to head. By falsely communicating to people on a companys environmental policies, to make them seem like a greener company. Greenwashing is an example of a short term effect. By this, greenwashing will only benefit a company until its false information is exposed. This could lead to a major drop in a companys reputation and its high credentials.

Overall, when assessing sustainability, there are many different organisational techniques and methods which will provide the outcome for a sustainable company. The construction industry is a fast growing industry, in terms of sustainable practises. Sustainable regulations and legislature are all in place to benefit the welfare of society and community, and they should correlate with current structures and buildings. Further analysis and research should be undertaken, to determine the right decision, whether or not it is to chose sustainable practises or not. Implementations will occur either way, and these areas are analysed through this report.

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CONTENTS
1. INTRODUCTION (4)
1.2 Purpose of investigation. (5)

2. LITERATURE REVIEW. (6) 3. METHODOLOGY (7) 4. RESEARCH FINDINGS AND ANALYSIS... (9)
4.2 Definition, Reasoning and Implications of applying sustainable practises. (9) 4.3 The building and construction life cycle.. (10) 4.4 Greenwashing and its implications...... (12) 4.5 Australian companies practising sustainability... (13)

5. CONCLUSION / RECOMMENDATIONS.. (15) 6. REFERENCES.. (16) 8. APPENDICES ... (18)

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1.

Introduction:

This Business report investigates the implications of environmental sustainability practises in the construction industry of Australia. Sustainability is vital to todays world, and is likely to become an environmental revolution. The environmental revolution will occur some time in the 21st century, just like the industrial revolution occurred in the 20th century. The environment will control the way we think and behave. This report discusses that different environmental sustainability practises that can be put into action in the construction industry for the company Management Foundations Construction for its benefit.

By pursuing these new areas of organisational behaviour, it is likely to contribute to increase organisational productivity and sustainability within the construction industry. Improving organisational productivity starts at the management level since it is primarily the responsibility of managers, productivity programmes will succeed or fail depending on managers attitudes, strategy, policy and, most importantly, practical action (1987, Prokopenko, Pg 57) Construction is one of mans activities that are acknowledged to have real and potential adverse effects on the environment and the well being of the populations of the world (Ngowi, 1999) Sustainable practises, including the use of efficient energy and material usage, pollution, waste management and recycling create adverse effects on the environment. Management Foundations Construction, and other major construction companies of Australia, can use these sustainable practises to maximise efficiency and minimise negative environmental impact.

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1.2

Purpose of Report:

This report discusses the reasons the board of Management Foundations Construction should pursue these new areas of organisational behaviour, and how it would be likely to contribute to improving organisational productivity and sustainability. The purpose of this report is to assess the development related to the construction industry and the construction of sustainable buildings. An analysis will be conducted to explain the issues, benefits and limited risks, as a result of these sustainability practises. Throughout the report, the implications of these sustainability practises will be investigated.

The increasing demand to understand the importance of sustainability is driven by a realisation that sustainable practices make sense to both owners and operators. The practices not only help the environment but can also improve economic profitability and improve relationships with stakeholder groups. (The Waste and Resources Action Programme, 2011)

To break down the report to gain a further understanding, the sub-topics included in the research findings, and analysis will be:

1. Definition, reasoning and Implications of applying sustainable practises 2. The building and construction life cycle 3. Greenwashing and its implications 4. Australian companies practising sustainability

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2.

Sustainability in Construction: Literature Review

Throughout the report, the benefits of carrying out sustainable practises will be further examined. Its also important to emphasise that sustainability in building and construction cannot be achieved, without having a strong economical base (Samarin, 2005).

Sustainability is a vital value to the construction industry to benefit companies in long term timing. Sustainability looks for the needs of future generations to come, so that they benefit from the work done today. Greenwashing is a major playing role in todays industry. Its an example of a long term negative effect on a company.

There are a lot of companies out there that are still interested in doing business as usual but making it appear as though they are taking steps towards sustainability. When a company puts out misleading information regarding its environmental policies, puts more emphasis on green marketing than sustainable development, or begins a marketing campaign about new sustainable initiatives before anything is done to support those initiatives, it is considered greenwashing. (Sharpe, 2009)

The effectiveness of sustainability within business is dependant on the businesses attitude towards sustainable practises. Sustainable building is becoming a major aspect for construction companies who want to rise in the industry.

Worldwide, the building industry is beginning to recognize the shortcomings of its products and to discover that there are readily available, cost-effective remedies. (Roodman, Lenssen, 2010)

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3.

Methodology:

There was much research conducted to prove the outcome of this report, relating to sustainable practises. The research included the break down of the impact on environment, sustainable practises has, and its future implications, for the far and short term future.

The diagram below shows the break-down of the brief implications the construction practises. These include those such as waste management, and efficient material usage, which effect the environment and society.

SUSTAINABILITY

Methods of Sustainability within the Construction Industry Waste Management Efficient Material Usage

Effect/ Contribution to Organisational productivity

Effect/ Contribution to Organisational productivity

Effect of practising method:

1. Effective waste management can lead to a better productivity rate. As you minimise the waste that is developed from construction, a proper waste management strategy, can maximise and improve profit margins. envir

Effect of practising method: 1.

Minimising material usage, and using recyclable materials can help improve productivity within the entity using environmentally friendly materials, such as recyclable materials, and materials with energy saving features

2.

2.

Practising these, lead to short term and long term effects to benefit the entity

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Methodology (continued): The diagram on the previous page represents the different sustainable practises that can be undertaken within a company to help increase organisational productivity and sustainability. Further on in the report, the different practises will be discussed with further detail (refer to 4.2- 4.5). There are benefits that come with using sustainable practises, but there are also minimal risks, but for the long term future, sustainable practises provide a positive outcome for a business/entity.

The diagram below shows how the ideas were strained through and created to be more specific, rather than being viewed from a broad spectrum:

1. Key factor: SUSTAINABILITY

2. In-Depth: SUSTAINABILITY within the construction industry, relating to Management Foundations Construction

3. SUSTAINABILITY, productivity and organisational factors within Management Foundations Construction

Broad Starting Point

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4.

Research Findings and Analysis

4.1 Definition, reasoning and Implications of applying sustainable practises

Sustainability is a word that can be related to many different topics and ideas in the world. According to much literature that has been reviewed over, most writers and authors come to define sustainability as:

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Even further narrowed down, environmental sustainability in construction is what this report aims to analyse. Sustainable construction is a way for the building industry to move towards achieving sustainable development, taking into account environmental, socio-economic and cultural issues. Specifically, it involves issues such as design and management of buildings, materials and building performance, energy and resource consumption - within the larger orbit of urban development and management. (UNEP 2011)

Reasons for sustainable practises within the construction industry are also to benefit company and environment. By implementing these practises, there are positive outcomes for the business. Sustainable practises will lead to long term efficiency and profitability for the business.

The construction and demolition industries generate over one third of all waste going to landfill. Over 75% of this waste is clean excavated material, concrete, bricks and timber. This waste is not an inevitable part of a project but a significant opportunity to increase a project's efficiency and profitability (Sustainability Victoria, 2011)

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4.3 The building and construction life cycle

The diagram below is the basic construction life cycle:

Lifecycle Construction Resource Guide EPA 2008 Above the diagram depicts the main phases of the construction process. All these phases have implications from sustainability practises. Developing construction waste and minimisation strategies are a major part of the sustainable sector of construction. Considerable work has gone into developing systems to measure a building's environmental performance over its life. They have been developed to evaluate how successful any development is with regards to balancing energy, environment and ecology, taking into account both the social and technology aspects of projects (Clements-Croome, 2004) Corporate social responsibility (CSR) plays a big role in this area of sustainability within the construction industry. For companies to benefit from these sustainable practises, CSR is a fundamental factor.

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According to the Australian Centre for Corporate Social Responsibility Social responsibility is the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that contributes to sustainable development, including the health and the welfare of society

takes into account the expectations of stakeholders is in compliance with applicable law and consistent with international norms of behaviour; and

is integrated throughout the organization and practised in its relationships.

Guidance Standard on Social Responsibility, ISO 26000 CSR is vital, if a business wants to be sustainable in its practises. As the definition states, social responsibility is the responsibility of an organisation for the impacts on society and environment (refer to definition above) by carrying out these practises, companies are also achieving CSR.

Another factor, not an important one when related to CSR, is the profit margin. Waste material and management, from deconstruction and construction, regardless of if they are recycled or sent to landfill are a cost to the business.

In addition to the obvious waste disposal and transport costs, there are further hidden costs such as the value of lost raw materials and the value-added cost from labour and energy. Minimising this waste is an opportunity to increase profit. There are waste minimisation opportunities in residential, civil and commercial projects. (Sustainability Victoria, 2011)

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4.4 Greenwashing and its implications

An example of a process that will benefit a company only in its short term future is a process called green washing.

When a company puts out misleading information regarding its environmental policies, puts more emphasis on green marketing than sustainable development, or begins a marketing campaign about new sustainable initiatives before anything is done to support those initiatives, it is considered green washing (Sharpe, 2009)

Greenwashing involves false advertising to consumers. This is only a short term benefit of profit, as It is most likely that your business will suffer badly through its loss in reputation. . Sustainability will be a key metric for construction projects of the future; dont let your standards lapse just because there is money to be made. If you are engaging in greenwashing, it is likely your sustainability credentials and your Professional reputation will suffer. (Sharpe, 2009)

Greenwashing can be a negative contribution towards a business. It may be useful in a short term outlook, but in long term, it does not portray a positive growth for a companys reputation and credentials.

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4.5 Australian companies practising sustainability

Hansen Yuncken is a well known Australian construction company who have a strong value for green building Hansen Yuncken is committed to Building Value for our people, our Clients and our communities. We see a sustainable building industry and business as vital to ensuring a healthy planet for future generations. Our commitment is demonstrated through our leading role in ESD construction and local involvement in our communities. (Hansen Yuncken)

"Hansen Yuncken took on more than a contract...from the top down they do believe in the sustainable goals of CH2 and it is because they adopt a style of participatory management that they are able to achieve them." Mick Pearce - Project Architect

Hansen Yuncken have a top priority to provide sustainable practices within the construction industry. Hansen Yuncken look to the future generations, and by practising these features of sustainability, they benefit themselves and their clients, by carrying out acts of Corporate social responsibility. Its clear that this is important to them, as it is their commitment.

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4.6 Australian companies practising sustainability (continued)

Laing O Rourke is another big Australian construction company, now focusing itself with sustainability. In 2008 they launched a sustainability program called EPIC Laing ORourke has come forward with a new sustainability agenda, that focuses on sustainability as a broader spectrum. EPIC is this program, which aims at focusing on more sustainable practises within the company.

In 2008, we launched EPIC, our sustainability program focusing on Environment, People, Industry and Communities. This program includes specific and measurable goals to:

Reduce the environmental impact of what we do and how we do it Promote the health and safety of our people, at work and at home, through a program of education and access to relevant information and support Improve the way we do business through constant innovation and a focus on core processes, as well as a commitment to improving the skills of our workforce Leave a positive legacy in the communities in which we operate, through a commitment to youth training and employment and community facilities

In conclusion with the Australian companies listed above, they are all turning towards sustainable practises within construction. It is working to be a more environmentally friendly option, and a profitable option for society and environment, but also for the company and its reputation.

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5.

Conclusion

There are logical conclusions that can be made from the analysis of the report. Relating back to the implications of environmental sustainability practises in the construction industry, there are many phases of construction which can be improved to reach a sustainable standard. Waste is a great example. Instead of wasting, recyclable materials can be used so there is no waste.

The basic ideas as this create a sustainable construction industry, which will meet needs for future generations, when it comes to building and constructing. Sustainable practises have a beneficial implication on businesses, for the future. It saves the company money, and maximises the margin on profit, due to the lack of material wastage, meaning less material is needed, or wasted material can be re-used and recycled.

Greenwashing implications are beneficial short term, but in long term, companies will suffer the loss of their reputation and credentials because of their false advertising. Hansen Yuncken and Laing ORourke are an example of two Australian companies growing with sustainability as their main motives.

Furthermore, Sustainable Construction is the way the future is heading for all companies. With new techniques and strategies to preserve the environment for future generations, there are many implications to come with this practise. Sustainable Construction is what many companies are turning to, and will soon become a compulsory acquirement for many.

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6.

References 1. ACCSR (Australian Centre for Corporate Social Responsibility). Defining Corporate Social Responsibility Accessed 30th August 2011: http://www.accsr.com.au/html/definecsr.html 2. Citizens Network for Sustainable Development, What is Sustainability Date accessed: 31st August 2011:

3. Dhir, R, Dyer, D, and Newlands; M. 2005, Achieving Sustainability In Construction; Thomas Telford Publishing 4. EPA (Environmental Protections Agency) (2008) Lifecycle Building Resource guide; Date accessed: 1st September 2011: http://www.lifecyclebuilding.org/files/Lifecycle%20Construction%2 0Resource%20Guide.pdf 5. Hansen Yuncken; sustainability; All links accessed 2nd September 201!: http://s2.webtemplate.com.au/bridgehead/HansenYunken2008/sus tainability http://s2.webtemplate.com.au/bridgehead/HansenYunken2008/sus tainability/environment 6. Citizens Network for Sustainable Development, What is Sustainability Date accessed: 31st August 2011: http://www.citnet.org/What+Sustainability 7. Laing O Rourke; Sustainability; Date accessed 2nd September 2011: http://www.laingorourke.com.au/content/sustainability/

8. Ngowi, Alfred B; May 2000, Vol 42, Issue 5, p28; Cost Engineering: Competing With Environment-Friendly Construction Practise; University Of Western Sydney Library,, University Press.

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9. Prokopenko, Joseph; 1987; Productivity Management: A practical handbook, ILO Publications 10. Robbins, Bergman, Stagg, and Coulter; 2009, Foundations of Management 3, Pearson Education Australia

11. Sharpe, Graeme, April 2009; MODERN STEEL CONSTRUCTION; Greenwashing the Construction Industry

12. Spiegel, R. and Meadows D; 2010, Green Building Materials: A Guide to Product Selection and Specification; Wiley 13. Sustainability Victoria, Construction waste minimisation strategy Check list; Date accessed: 1st September 2011: http://www.sustainability.vic.gov.au/resources/documents/Guideli nes_for_Preparing_a_Waste_Reduction_Strategy_for_Const.pdf 14. Sustainability Victoria, How to Minimise Construction & Demolition Waste (Last updated 23/06/2011), Date accessed: 30th August 2011: http://www.sustainability.vic.gov.au/www/html/1940-how-tominimise-construction--demolition-waste.asp 15. UNEP (United Nations Environment Programme) Sustainable Building and Construction Date accessed: 1ST September 2011: http://www.unep.or.jp/ietc/Activities/Urban/sustainable_bldg_cons t.asp 16. WRAP (Waste & Resources Action Programme). (2010), Sustainability in Construction Accessed: 31st August 2011: http://aggregain.wrap.org.uk/sustainability/sustainability_in_const ruction/index.html

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7.

Appendices

Data and Diagram Sources: 1. 10 Signs of Greenwashing Futuerra Communications; Date accesed: 1st September 2011: http://www.melodiesinmarketing.com/2008/05/29/10-signs-ofgreenwashing/

2. WRAP Sustainability in Construction; Flow chart Diagram; Date accessed 1st September 2011: http://aggregain.wrap.org.uk/sustainability/sustainability_in_const ruction/index.html 3. UNEP Sources used for creating charts and diagrams; Date accessed: 1st September 2011: http://www.unep.or.jp/ietc/Activities/Urban/sustainable_bldg_cons t.asp 4. Sustainability Victoria Resource guide Construction Waste minimisation strategies Date accessed: 2nd September 2011: http://www.sustainability.vic.gov.au/resources/documents/Guideli nes_for_Preparing_a_Waste_Reduction_Strategy_for_Const.pdf 5. EPA Lifecycle Construction Resource Guide; Date accessed 2nd September 2011: http://www.lifecyclebuilding.org/files/Lifecycle%20Construction%2 0Resource%20Guide.pdf

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