By Nick Dimmock, Head of Investor Relations at EnviraBoard and Founder of 350 PPM
The building products supply chain is undergoing significant transformations to align with net-zero targets, driven by the need for sustainable materials, energy-efficient practices, and reduced carbon emissions.
Let’s have a closer look at the key ways in which the supply chain is adapting:
Sourcing Low-Carbon Materials
Suppliers are increasingly sourcing renewable and recycled materials, like reclaimed wood, recycled steel, and sustainable insulation, to lower the embedded carbon in building products.
Concrete and cement are significant carbon emitters, and the industry is moving towards low-carbon options, including carbon-sequestering concrete, geopolymer concrete, and blended cements that reduce clinker content.
To reinforce this approach, companies are increasingly adopting certified sourcing practices and environmental product declarations (EPDs), providing transparency in material origins and carbon footprints, helping builders make informed choices.
Manufacturing Process Optimisation
In a bid to decarbonise production, building product manufacturers are investing in renewable energy sources, such as solar or wind, to power facilities and reduce reliance on fossil fuels. This also includes upgrading to energy-efficient machinery and adopting cleaner production technologies.
By adopting circular economy practices, such as incorporating waste reduction, recycling, and repurposing byproducts in production, manufacturers can limit resource use and carbon emissions. Closed-loop manufacturing, where waste materials are reused within production, is also gaining traction.
For high-emission industries like cement and steel, carbon capture and storage (CCS) technology is being explored to capture emissions at the source and prevent them from entering the atmosphere.
Supply chain and logistics optimisation
The building supply chain is starting to embrace lower-carbon transportation methods, such as electric trucks and rail over road; and by optimising shipping routes, the whole building chain can reduce the emissions associated with material transport.
Manufacturers and builders are working to shorten supply chains by sourcing materials closer to production or construction sites. This local sourcing of materials not only reduces transportation emissions but also supports regional economies.
Furthermore, by optimising inventory and demand forecasting, companies can reduce the need for excess production and minimise waste, lowering the carbon impact of the entire supply chain.
Designing for deconstruction and reuse
The modular construction and prefabrication of buildings is reducing waste and energy use during production, and these components can be disassembled and reused, extending their lifecycle and reducing overall environmental impact.
By focusing on producing long-lasting products, we can reduce the frequency of replacement and lower resource consumption over the long-term and this is a critical consideration in net-zero building projects – quality over quantity.
And in support of this theme, building products designed for easy disassembly and recycling at the end of their lifecycle help to close the loop, reducing waste and supporting circular construction practices.
Enhanced digital tools and data transparency
Building information modelling (BIM) tools enable stakeholders to assess the carbon footprint of different materials and construction practices, optimising designs for sustainability before construction begins. By simulating energy use and material choices, BIM enhances decision-making for net-zero goals.
Blockchain technology is increasingly used to track materials through the supply chain, providing transparency and accountability for sustainable sourcing and carbon tracking.
Many companies are adopting tools that calculate the lifecycle emissions of building products, helping architects, specifiers and builders select low-carbon options and providing visibility into a product’s environmental impact from cradle to grave, or even cradle to cradle, as the case may be.
Implementing Industry Standards and Certifications
The supply chain is aligning with green building standards like LEED (Leadership in Energy and Environmental Design), BREEAM (Building Research Establishment Environmental Assessment Method) and WELL (the performance based building standard), which set requirements for sustainable, low-carbon building practices. These certifications encourage suppliers and manufacturers to adhere to environmentally responsible practices.
New standards and frameworks for net-zero buildings are being developed, prompting the building product supply chain to meet stricter sustainability requirements. Standards like the Science-Based Targets initiative (SBTi) provide roadmaps for achieving net-zero emissions.
Increasingly companies are requiring suppliers to adhere to codes that outline environmental standards, sustainability targets, and emission reductions, pushing accountability down the supply chain.
Waste reduction and recycling Initiatives
Construction sites are increasingly equipped to run their own onsite recycling programs for materials like concrete, metal, and wood, reducing landfill waste and lowering the carbon footprint of building projects.
This is further supported by the repurposing of demolition materials, so instead of discarding old building materials, companies are salvaging and reusing materials from demolition sites, reducing the need for new materials and preserving embodied carbon.
Many manufacturers are now setting zero-waste-to-landfill targets, implementing strict waste sorting and recycling practices at production sites to minimise landfill contributions.
Innovative Energy-Efficient Products
Products that improve building envelope efficiency, such as advanced insulation and low-emissivity windows, reduce energy use in buildings, and smart building materials, such as self-regulating windows and dynamic facades, optimise energy use by adapting to weather conditions, reducing the energy needed for heating and cooling.
Building product suppliers are focusing on energy-efficient HVAC systems, heat pumps, and renewable-powered heating and cooling solutions that help buildings achieve lower operational emissions.
Collaboration Across the Supply Chain
Achieving net-zero goals requires collaboration between manufacturers, suppliers, architects, and builders. Initiatives like the Net Zero Carbon Buildings Commitment bring together stakeholders to set shared goals and practices.
The construction industry is working with tech companies, governments, and NGOs to develop and implement scalable solutions that reduce the carbon footprint of building materials and practices.
Carbon Offset and Renewable Energy Investments
Building product manufacturers are investing in renewable energy projects, both on-site and through external offsets, to lower the net carbon emissions of their production.
Some suppliers support reforestation or carbon capture projects to offset the emissions they cannot eliminate, bringing their net emissions closer to zero.
In summary, the building products supply chain is transitioning to align with net-zero targets through the adoption of sustainable materials, energy-efficient processes, digital tools, and collaborative efforts. This comprehensive shift is reshaping the industry and paving the way for more sustainable, lower-carbon construction that is essential to achieving our global net-zero objectives.