Investors call on construction material companies to commit to net zero emissions by 2050

Brick, Stone, Blocks, Building Material, Construction

With the construction materials sector exposed to significant transition and physical risk resulting from climate change, the Institutional Investors Group on Climate Change (IIGCC) recent paper, Investor Expectations of Companies in the Construction Materials Sectoroutlines the steps that investors expect companies to take to manage climate risks and accelerate action to decarbonise in line with the goals of the Paris Agreement.

The guide is endorsed by other investor networks that make up the Global Investor Coalition of Climate Change, and was developed in line with the goals of Climate Action 100+ in order to inform investor engagement with construction material firms on the initiative’s global list of 161 focus companies.

Investors supporting the Climate Action 100+ initiative expect construction material companies to make commitments in respect of

  • Implement a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risk and opportunities.
  • Take action to reduce greenhouse gas emissions across their value chain, consistent with the Paris Agreement’s goal of limiting the increase in global average temperatures to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
  • Provide enhanced corporate disclosure in line with the final recommendations of the TCFD5 and, when applicable, sector-specific Global Investor Coalition on Climate Change Investor Expectations on Climate Change to enable investors to assess the robustness of companies’ business plans against a range of climate scenarios, including well below 2°C and improve investment decision-making.

Climate change risk is especially acute for companies that manufacture cement. As the most widely used construction material globally, cement is the source of 7 percent of global man-made carbon dioxide emissions. If the cement industry were a country, it would be the third largest global emitter, behind only China and the US.

RE:Sources

Declare is a construction materials transparency disclosure programme.

The Living Product Challenge is a climate responsible framework certification programme for manufacturers to create products that are healthy, inspirational and regenerative, giving back to the environment and people. https://living-future.org/lpc/

The Institutional Investors Group on Climate Change (IIGCC), is the European forum for investor collaboration on climate actionand the voice of investors taking action for a prosperous, low carbon, future. 

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Reimagining Construction Materials: (Waste) Food for Thought.

 

pexels-photoA new Arup publication, (The Urban Bio-Loop) aims to demonstrate that a different paradigm for materials in construction is possible, through the adoption of organic waste re-imagined as construction materials.

“Adopting the principles of Circular Economy provides the rationale for a shift from a linear (take, make, dump) disposal model – towards a circular value chain where organic waste is the main resource.

The use of organic waste in construction would possibly allow the exploitation of its untapped value with a positive impact not only from an environmental perspective but also from a technical, social and economic standpoint”

The waste and resource use profile of construction is not healthy, as reinforced by statistics within the report. For example,  60% of UK raw materials are consumed by construction and operation of the built environment and up to 30% of EU waste comes from construction. (FutuREstorative used the 40% rule of thumb for waste and resource use)

And the food waste sector is equally poor, with 0.6 billion tonnes consumer organic waste produced globally,  accounting for 5% of global green house gases.

The report suggests that “organic waste from our cities and countryside, traditionally managed through landfill, incineration and composting could be diverted – at least in part – to become a resource for the creation of construction engineering and architecture products before being fed back in the biological cycle at the end of their service life”

Intriguing and Inspiring facts and examples include:

  • Pineapple: Internal cladding and furniture
  • Rice: Brick and Block Products. Rice can be also used as raw material for board production
  • Banana fruit and leaves can be used to obtain rugged textiles and carpets. The material is 100% biodegradable. http://leoxx.nl/
  • Sunflower: floors walls and ceiling boards, made by the repurposing of waste from sunflower harvesting. They are made by just adding water, heat and pressure with no additives. http://www.kokoboard.com/
  • Peanut: Flame retardant boards, made by the repurposing of waste from peanut shells. Peanuts shell are turned into particle boards by a hot press procedure and the use of a formaldehyde-free (e.g. soy based) adhesives.

Download the Arup report from https://www.arup.com/en/publications/research/section/the-urban-bio-loop