Buildings currently contribute nearly 40% of global energy-related carbon emissions, meaning the construction industry has a vital role to play in helping to drive this down and meet 2050 Net Zero targets. Many companies in the sector are playing their part and awareness of the business benefits is growing. Now, a commitment to sustainability is no longer a nice to have, it’s essential to creating long-term sustainable value and driving positive outcomes for businesses and the planet.
In KPMG’s latest Global Construction Survey, 54% of engineering and construction companies recognise the benefits of ESG investments and are making improvements in this area, with half of those surveyed seeing the opportunity to gain a competitive edge. Additionally, one in three project owners recognise the need to integrate ESG into both their projects and reporting to enhance access to funding.
Alongside helping our customers improve their sustainability credentials, we also practice what we preach. Eque2's activity spans all elements of ESG – environmental, social, and governance, from supporting local communities, running initiatives that support the mental and physical health of our people and raising awareness diversity, equity and inclusion to promoting local suppliers. We have a dedicated ESG committee that champions change, holding the business accountable to deliver on our commitments.
We have also aligned our ESG goals to the UN Sustainable Development Goals (SDGs) and have taken our first steps to minimise our impact by conducting a baseline assessment of our Scope 1, 2 and partial Scope 3 emissions and setting reduction targets. Our inaugural Net Zero report outlined our pledge to achieve Net Zero by 2035 and we are working with a specialist carbon consultancy, Sustainable Advantage, to determine the best practices to reach this target.
Our software has evolved in line with our customers' changing requirements, and with the industry under pressure to decarbonise, we’ve innovated solutions to aid this as we take a leadership role in the industry’s transition to a low carbon economy.
EValuate Estimating has a new embodied carbon feature
Whilst there has long been a focus on the operational emissions of buildings; to meet net zero targets, the construction industry must also pay attention to embodied carbon which is emitted during the construction of a building. The UKGBC estimates that embodied carbon from the construction and refurbishment of buildings currently makes up 20% of UK built environment emissions – a figure that is set to rise. Extracting, manufacturing, transporting, installing, and disposing of building materials all contribute to embodied carbon emissions.
Whilst there is currently no regulation or framework for the industry covering embodied carbon, it is expected in the near future. Industry leaders are backing proposals for legal limits on embodied carbon and the new Labour Government is being called upon to introduce a set of standards. Current proposals would see an amendment to Part Z building regulations to enforce mandatory limits and a requirement for construction companies to assess and report on embodied carbon.
Not only do construction companies need to consider embodied carbon for regulatory purposes, but also because increasingly local authorities are asking for details on this as part of planning permission applications and environmental impact statements.
Despite the scale of the issue, there remains a data gap in the industry, with many construction firms unsure where they can turn to get the information they need on the amount of embodied carbon their projects will produce.
This is where the latest release of Eque2’s estimating tool, EValuate, comes in. EValuate aids construction firms in quickly producing accurate tenders, working out the cost of a job to provide an estimate. In response to customer demand and the changing regulatory landscape, the latest version of EValuate will have a new embodied carbon feature.
In much the same way that the software can be used to calculate how much the materials required will cost, construction companies will now be able to establish an estimate for how much embodied carbon they will produce. As businesses are increasingly asked for this information when producing tenders, EValuate will now be able to make it a simple part of the tendering process.
If a drawing or plan is updated, the predicted embodied carbon will update accordingly. As a result, it can be used to support decision-making, enabling construction firms and their clients to consider the environmental impact of a project, alongside the financial factors.
With regulation on the horizon, and Net Zero targets looming, construction companies using EValuate can get ahead of the curve.
Introducing Continia Sustainability
Eque2’s commitment to ESG extends beyond the business, to our partners as well. One of these is Continia Software, a leading provider of add-on solutions for Microsoft Dynamics 365 Business Central. As Continia’s biggest partner in the UK, Eque2 will be offering customers access to its new product – Continia Sustainability.
Developed out of the business’s own desire to find an accurate method for carbon accounting, the carbon management platform will enable Eque2 customers to track and report their carbon emissions directly from Business Central. It automatically converts financial and quantitative data into CO2 equivalents, accurately calculating and allocating Scope 1, 2, and 3 emissions using more than 50,000 up-to-date emissions factors and allowing for the creation of carbon reports that align with the Greenhouse Gas (GHG) Protocol.
With new EU regulations, such as the Corporate Sustainability Reporting Directive (CSRD) businesses will increasingly be required to report on their emissions and their efforts to reduce them. Armed with this data, companies can take action to reduce their carbon footprint. Even for companies that do not yet meet the threshold for reporting, as customers increasingly expect transparency when it comes to sustainability, reporting on emissions can help businesses stay competitive in the market.
Our webinar taking place on the 23rd of October, will delve into EValuate’s new feature, as well as cover the Continia Sustainability product. Attendees will also hear about how we are reaching our own sustainability goals with Sustainable Advantage.
ESG has never been more important to Eque2, the industry, or the world. To find out how your construction company can get on track to a sustainable future, sign up to attend the webinar here which is taking place on Wednesday 23rd October at 11am where we will be joined by Sustainable Advantage and our ESG experts here at Eque2
