Sustainable construction is all about designing, building, and operating structures in a way that minimises environmental impact while maximising social and economic benefits.
Yet, the numbers don’t lie—construction remains a major contributor to environmental degradation, and the industry needs to evolve.
As we walk through bustling cities like Sydney, Melbourne, Brisbane, and Auckland, surrounded by ever-expanding skylines, the urgency of this conversation becomes clear. Sustainable construction is a necessity shaping the future of our built environment.
At BraveGen Academy, we’ve explored the challenges of achieving net zero, balancing business growth in construction, and tackling Scope 3 emissions.
Now, we’re diving into why sustainability in construction is more important than ever—and what it means for the future of the industry.
Understanding sustainability in Construction.
The construction industry makes up 36% of global energy use and 40% of total CO2 emissions. This involves using eco-friendly materials, implementing energy-efficient systems, reducing waste generation, and creating healthy indoor environments.
Sustainable construction aims to minimise the depletion of natural resources, reduce greenhouse gas emissions, and promote the wellbeing of occupants and the surrounding community.
In New Zealand, the industry contributes approximately 20% of the country’s carbon emissions, with building operations and materials—particularly concrete and steel—being major sources of embodied carbon.
Meanwhile, Australia’s construction sector accounts for 18% of the nation’s total emissions, with a staggering 40% of landfill waste coming from construction and demolition activities.
Both countries are tightening regulations to drive sustainable practices. New Zealand’s Building for Climate Change programme aims to reduce the sector’s emissions through improved building performance standards, while Australia’s National Construction Code is introducing stricter energy efficiency requirements.
Environmental, social, and financial benefits of sustainable construction.
The environmental benefits of sustainability in the construction industry are manifold and far-reaching. The social benefits of sustainability in the construction industry are equally significant, fostering a sense of community and wellbeing among inhabitants.
Environmental benefits.
Sustainable construction minimises environmental impacts by using eco-friendly materials, improving energy efficiency, and reducing waste. In New Zealand, the government’s focus on green building standards like the Green Star rating is helping reduce carbon emissions.
Buildings are responsible for nearly 20% of New Zealand's emissions, and sustainable construction practices can drastically lower that number.
Similarly, in Australia, buildings and infrastructure are directly responsible for almost one third of Australia’s total carbon emissions, and indirectly responsible for over half of all emissions.
Social benefits.
Sustainable buildings foster healthier living and working environments by enhancing indoor air quality and using natural light effectively. They also provide long-term societal benefits, such as promoting sustainable communities and improving the quality of life for residents.
In New Zealand, sustainable buildings are becoming a key part of urban planning, promoting energy-efficient and resilient communities.
Financial benefits.
Sustainable construction offers substantial long-term cost savings. In Australia, energy-efficient buildings can reduce operating costs by up to 63% in some cases. Additionally, buildings with sustainability credentials attract higher property values and are more appealing to eco-conscious tenants and investors.
Moreover, the Australian Sustainable Built Environment Council (ASBEC) reports that setting stronger energy standards for new buildings could, between now and 2050, reduce energy bills by up to $27 billion, cut energy network costs by up to $12.6 billion, and deliver at least 78 million tonnes of cumulative emissions savings.
These findings underscore the substantial financial benefits of adopting sustainable construction practices in Australia.
Overcoming challenges.
While the benefits of sustainable construction are clear, there are significant challenges to its widespread adoption in New Zealand and Australia. These challenges range from financial constraints to regulatory hurdles, but they can be addressed with a strategic approach.
Cost and initial investment.
A major barrier to sustainable construction is the higher upfront costs, as green materials and technologies can be more expensive than traditional options. However, these costs are often offset by long-term savings in energy, reduced operating costs, and higher property values.
Sustainable buildings tend to provide better returns over time, with lower energy consumption and increased demand from eco-conscious tenants.
While natural building materials may be cheaper in developing countries, the overall cost of sustainable construction can still be higher due to the need for specialised equipment and products. Despite the initial investment, sustainable buildings ultimately reduce financial burdens in the long run, making them a more cost-effective choice overall.
Regulatory and policy framework.
A significant challenge for sustainable construction is the inconsistency in regulatory frameworks and the lack of strong incentives.
While some regions have introduced regulations to support green buildings, there is often no unified national policy or consistent standards, making it difficult for developers to navigate the landscape. Clearer guidelines and more comprehensive support are needed to help the industry transition toward more sustainable practices.
Awareness and education.
A lack of awareness about the benefits of sustainable construction is another barrier. Builders, developers, and even consumers may not fully understand the long-term advantages of investing in sustainability.
Public education campaigns and industry training can help bridge this knowledge gap, encouraging wider adoption of sustainable practices.
Despite these challenges, ongoing efforts by governments, industry leaders, and educational institutions are steadily transforming the construction landscape, paving the way for a more sustainable future.
How does the future look?
There are growing opportunities for the construction sector in Australia and New Zealand to expand in key areas like sustainable development and the integration of technology.
The increasing demand for environmentally friendly construction methods and materials, combined with advancements in smart technologies, provides developers with new avenues to enhance project value while reducing environmental impact.
The push towards sustainability is becoming more than just a fad. With climate change at the forefront of global discussions, the construction industry has a crucial role to play in reducing carbon footprints and promoting greener building practices.
The ASBEC has highlighted the significant role of the building sector in achieving Australia's emissions reduction targets. Their "Low Carbon, High Performance" report indicates that actions to reduce emissions from the building sector could deliver up to 28% of Australia's 2030 emissions reduction target.
By working to embrace innovative solutions, overcome challenges, and accelerate the adoption of sustainable practices, the industry can forge a path towards a more resilient and prosperous future.
The coming years will undoubtedly test the sector, but with a focus on sustainability and technological progress, there is immense potential for growth and success.
