Supply Chains: Regulation must point the way

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Growing scrutiny of the environmental footprint of the materials used by contractors and architects is turning attention to what goes on before bricks have even met their mortar.

But if measuring the carbon footprint and other environmental credentials of a building is tough, assessing the sustainability of materials such as concrete, timber, glass and steel is even harder, particularly as these may be part of complex supply chains that begin in distant corners of the world.

Moreover, the construction industry is fragmented, making it difficult to impose standards. "It tends to be a lot of small contractors installing different systems from heating to lighting, which can mean the rate of adoption is slower, because you are trying to influence a very large number of players," says Stephen Mahon, chief investment officer at UK-based Low Carbon Accelerator, which invests in low carbon businesses.

Despite these challenges, a number of organisations are developing systems, guides and standards for green building materials. Among them is Bovis Lend Lease, the project management and construction group, which is putting in place a supply chain accreditation scheme it calls BuildingConfidence.

Eventually, the company will require all its trade contractors to supply materials that have independent assurance on energy and water consumption used in the manufacturing process, their use of renewable or recycled materials as well as their provenance and their broader environmental and social footprints.

"The big question is how do you define a sustainable building," says Paul Toyne, head of sustainability at Bovis Lend Lease UK.

"Yes, you use renewable energy and your facilities might be sustainable, but the legacy is in the materials. They stay there for the lifetime of the building."

The deadline the company is setting for suppliers will vary for different materials. "There is some complexity in terms of the supply chain and the different types of ingredients," explains Mr Toyne.
"Some are straightforward and some are complicated, and some manufacturers are working in countries that have poor governance, so the ethics and standards make it quite complicated."

However, because of its buying power, Bovis Lend Lease believes its imposition of green standards can make a difference.

"We have a large pipeline of projects, we have a very big spend on procurement and we're established and well known," says Mr Toyne. "So if we send those signals to the market, we can act to change the industry."

At the same time, BRE Global, an independent third-party approvals body that is part of the group behind the UK's BREEAM green buildings standard, has launched a framework standard for the responsible sourcing of construction products.

The standard focuses on questions such as where a particular material comes from, how the workers producing it were treated and its overall impact on the environment.

Coming up with the standard - called the Framework Standard For Responsible Sourcing Of Construction Products - has not been easy. "Whether you produce timber, dig things out of a quarry or make bricks, responsible sourcing means different things to different people," says David Gall, director of the scheme.

The approach is one of a rating system. Entry to the system requires evidence that a company is assessing the sustainability of its products and more points are awarded as manufacturers progress.

"It allows people who don't have a finely tuned process to get a credit to start with and then improve their processes and get better ratings," says Mr Gall.

As the trend towards greener buildings accelerates, Mr Gall believes that the standard will provide a critical tool.

"The person who makes the brick can say they're making a responsibly sourced brick, and then the people putting the brick into the house can claim the house has a green tick against it," he says. "So it should help the whole chain."

An important driver for the development of this supply chain of green construction materials is government legislation. Under the UK's Carbon Emission Reduction Targets scheme, for example, power utilities must deliver mandated amounts of carbon savings. One way of doing so is by insulating customers' homes.

"The whole growth around energy efficiency is stimulating new and more sustainable solutions for homes," says Mr Mahon, whose company invests in such entities as Ochre Natural Insulation, which produces its materials from sheep's wool. "That's driving a lot of growth in home insulation."
Mr Mahon believes regulatory incentives will remain essential to the initial development of a market for sustainable construction materials.

"The government has to step in with some sort of stimulus to enable it to get off the ground," he says. "Then, when these industries get enough market penetration, they'll have the volumes to become more economically competitive."

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