Why Construction Contractors Cannot Afford To Take Their Time With Net Zero Targets
Blog-June 7, 2023
With the built environment producing 39% of global carbon emissions,¹ construction firms are under pressure to embrace more sustainable practices. But while the ethical argument is clear, there is also a growing business case for accelerating the transition to net zero.
Put simply, construction firms that fail to adapt to clean up their supply chains could potentially lose business in the coming years. Embracing eco-friendly equipment like mobile welfare units and lighting towers will not only help improve sites – it will be a vital part of winning new business.
1. New procurement rules
Legislation plays a key role in this shift. The Procurement Bill – first introduced in 2020 and currently making its way through parliament – will have a significant impact on how construction procurement in the public sector works. More specifically, it will require contracting authorities to factor environmental concerns and the impact on local communities into its decision making.
Similar moves have been made in other sectors. Today, all NHS procurement decisions include a net zero and social value weighting: companies that want to become suppliers must prove they are taking action on climate change. From April 2023, suppliers on contracts over £5 million have to publish carbon reduction plans. By 2030, suppliers will only qualify for NHS contracts if they can clearly demonstrate their progress on climate issues.²
While we don’t yet know exactly how The Procurement Bill will change construction procurement, it is fair to assume firms that cannot provide clear eco-credentials will face an uphill battle.
2. Environmental action is a competitive advantage
The upside of this shift will be that businesses embracing eco-friendly mobile welfare units and other technology that reduces carbon emissions will gain a major advantage. By demonstrating the action they’ve taken to reach net zero, they will be more appealing during the tender process – and make themselves indispensable.
Small changes can have an outsized impact in this regard. Swapping traditional welfare units for eco-friendly mobile welfare units can lead not only to 15x fuel cost reductions – it reduces daily fuel usage by 90%.
With companies all competing to reduce their environmental impact, attention to such relatively small factors could be enough to produce a winning tender.
Not sure whether the savings will be worthwhile? Our Eco-Calculator can quantify exactly how much carbon you’ll save by switching to eco-alternatives.