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Sustainability in the Construction Business — A Case Study
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Sustainability and Construction
Sustainability in the Construction Business — A Case Study Axel Wenblad
Skanska is among the world’s five largest construction companies, with constructionrelated activities and project development operations in some 60 countries. A strategic approach to environment was adopted in 1995. In 1998 a decision was made to introduce certified environmental management systems. The drivers behind these steps were pressures from the market, future legislation and public opinion. By the end of 2000, all business units of Skanska had environmental management systems certified according to ISO 14001. Newly acquired companies are required to have certified systems within two years after acquisition. While environmental management systems provide the necessary framework, more technical tools are also needed. Some examples of such tools are presented in this article. ISO 14001 is an important element in focusing the attention of the organization on environmental issues, but for leadership in environment, a number of guiding principles are also presented and discussed. Finally, corporate social responsibility ŽCSR. can be seen as a framework for all types of issues where a company is regarded as having certain obligations toward society at large, because of direct or indirect effects from its business operations. It is only logical that Skanska, following its work with ISO 14001 and the move toward leadership in environment, now has decided to develop a CSR platform. 䊚 2001 Elsevier Science Inc. All rights reserved.
Mr Axel Wenblad, MSc in biology and chemistry, joined Skanska in 1999 as vice President Environmental Affairs. Earlier assignments include AB Volvo, coordinating environmental affairs, the Swedish Environment Protection Board, Ministry of Environment and Government Committees in Sweden. During 1975–1980 Mr Wenblad had various assignments for FAO and UNEP in the field of marine pollution.
Corresponding author: Skanska AB, P.O. Box 1195, SE-111 91 Stockholm, Sweden; Tel.: q46-8-7538998; fax: q46-8-7533271; E-mail: [email protected].
Skanska is among the world’s largest construction companies. Annual sales are about US $15 billion. Skanska has some 80 000 employees. Its main markets are Sweden, Finland, Norway, Denmark, the U.S., the U.K., Poland, the Czech Republic, Argentina and Hong Kong. In addition to these main markets, Skanska is active in some 50 other countries throughout the world. Skanska’s mission is to develop, build and maintain the physical environment for living,
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
157
Sustainability and Construction
traveling and working. More and more of its clients today are seeking greater specialization and focus on their core operations. For most industrial and service sector companies, planning of premises and other construction-related services lie outside of their core operations. It is thus a natural step to seek a partner that can offer a comprehensive range of services in the construction process — everything from the development of a package solution through actual construction and responsibility for the maintenance of the building. This is a trend that is very clear for many commercial buildings. For large infrastructure projects — another core activity of Skanska — the situation is different. Many of these projects are publicly financed and thus subject to very rigorous public procurement procedures. There is also a trend toward developing infrastructure projects like roads and railways as Build-Own/Operate-Transfer ŽBOT. projects. Recent examples of BOT where Skanska is involved are a freeway between Helsinki and Lahti in Finland and a freeway through Santiago de Chile. Skanska is also active in the home-building sector as well as facilities management and the development of services related to management of commercial buildings. Its activities are thus very diversified, but our products have in common that they: d d d
d
d
have a long service life; consist of many components; are tailor-made for the site and to suit client demands; are utilized to host a variety of activities; and have a major impact on the use of resources in society.
The First Steps When environmental issues were originally introduced in Swedish business in general during the 1970s, the emphasis was very much on the risks, while the opportunities came in much later ŽFigure 1..
158
Figure 1 Opportunities and risks.
At Skanska we started to work with various projects focused on improving resource efficiency, both in the energy and waste management sector. Those projects were, however, generally small and based on local initiatives. In 1995 Skanska began to apply a strategic approach to environmental issues. This was a period when all large Swedish construction companies embraced the environment as a strategic issue. There were two main reasons for this strategic approach. The first reason was that the Swedish government at that time was looking at different waste streams in society and the potential for increasing reuse and recycling of materials. The construction industry, of course, wanted to avoid rigorous regulations and responded by taking voluntary initiatives to reduce construction waste. This led to a commitment from the Swedish construction sector to reduce waste by 50 percent. The second reason for the construction business to embrace environmental issues was a growing market demand. Although not very strong, the signals were coming from the public, property owners and public agencies. This was the environment in which Skanska was working, focusing more on opportunities and less on risks. In 1997, however, an unfortunate chemical accident occurred in a project in southern Sweden where Skanska was the contractor. A chemical product used for
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
sealing a railroad tunnel contaminated the groundwater leading to acute effects on grazing cattle. The media attention that followed in Sweden was intense. This had a profound impact on the way Skanska handled environmental issues. The most important lesson learned was that it is equally important to address both risks and opportunities.
Introducing ISO 14001 In 1998 the management of Skanska made a strategic and far-reaching decision. All units within the Group should introduce environmental management systems within less than two years Žby the end of 1999. and have them certified by the end of 2000. Some companies in other industrial sectors had made similar decisions earlier. The difference, however, was that they had a reasonably small number of factories to include in their systems, while Skanska had about 10 000 large and small projects, where the environmental systems would have to be applied in its day-to day activities. This was a great challenge, and although the approach varied between different Skanska business units in different markets, the goal was clear: introduce the system and get it certified according to the ISO 14001 standard by the end of 2000. The basis for an environmental management system is a continuous process in which environmental activities are planned, implemented and followed up, with demands for continuous improvement. Important elements of an environmental management system are: d
d
d
d
Training programs and information to employees. Initial environmental reviews and identification of significant environmental aspects. Formulation of objectives and action programs. Implementation of actions.
d
d
Internal follow-up Žmeasurements, internal environmental audits, management reviews.. External verification by accredited certification bodies during ISO 14001 certification and registration.
A system that is certified according to the ISO 14001 standard has thus been verified by an external organization that is accredited for this task. A few of Skanska’s business units in Sweden were certified even before the 1998 decision was made. All its business units in the U.S. obtained their certification during 1999 working very effectively to put the environmental management systems in place. By the end of 2000 all remaining business units reported that they had been certified. This includes Skanska Group headquarters, which is probably among the few corporate headquarters in an international business with its own certificate. Skanska was the first international construction company to be certified to ISO 14001.
Although ISO 14001 is a powerful management tool, it does not solve all problems. w1x One of the challenges today is to get Skanska’s recently acquired companies in Poland, the U.K., the Czech Republic, Norway and Hong Kong on board. Through the process of certification so far, however, we have gained considerable experience, which we will of course use to help these new Skanska companies. The other challenge is to maintain the environmental management systems and integrate them with other management systems, which we already do to a certain extent — especially in Skanska’s Swedish business units. One result of the introduction of ISO 14001 has been that all business units have worked
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
159
Sustainability and Construction
Table 1 Significant environmental aspects — an overview
Land use planning Design Construction Service life Renovation Demolition
Materials
Chemicals
Energy conservation
Soil contamination
⻬ ⻬
⻬ ⻬
⻬
⻬ ⻬ ⻬
⻬ ⻬
⻬
⻬ ⻬
to identify the significant environmental aspects of their projects. Table 1 provides a brief overview of environmental aspects that have been highlighted as particularly important. Their importance varies over the life cycle of a project, from land use planning to construction, service life and demolition.
A Project Organization Although ISO 14001 is a powerful management tool, it does not solve all problems. On the contrary, it becomes more apparent that you need a set of more technical tools to develop and communicate your performance. The challenge is not only to develop these tools, but also to put them into operation in a project-oriented organization: an organization where every product is unique, tailor-made and specified by the client. The contractor’s various roles have a great impact on the potential to influence environmental considerations and solutions in a project. In general, the aim is to enter the development process as early as possible. A project in which the contractor is also the developer of course provides the greatest degree of freedom. At the other end of the scale are contracts in which the client specifies every detail. This is particularly common for public procurement. Somewhere in between are ‘‘performance contracts’’ and ‘‘turnkey contracts’’. The construction of Scandic Hotel Simonkentta¨ in Helsinki is an example of a unique collaborative venture to enhance the environmental standard. The user, owner and con-
160
⻬
Waste
⻬ ⻬ ⻬ ⻬ ⻬
tractor have jointly developed a construction process that incorporates environmental considerations. The project covers procurement, construction and maintenance in a lifecycle perspective. An example of a more traditional project is ¨ the Oresund Bridge, which connects Denmark and Sweden. The contract was awarded through public procurement, with environmental performance playing an important role. Skanska’s experience from the environmental efforts in the project can be summarized in five key points: d d
d
d d
A client with clear environmental demands. A comprehensive environmental impact assessment. A commitment to environmental work by all parties. A skilled and responsible contractor. Good follow-up and evaluation programs.
A Construction Project: Key Stages This section describes, in general terms, the stages of a construction project, together with example of tools that have been developed ŽFigure 2.. Many large projects, in particular, include risks that have to be identified and addressed. In addition to technical, financial and legal risks, Skanska’s risk assessment also includes environmental issues and societal issues. In the environmental field, a risk assessment takes into account such aspects as significant environmental impact, relations with suppliers and clients and contaminated soil. Examples of
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
Figure 2 Basic elements of a construction project.
societal issues are labor practices, safety, human rights, community involvement and ethics. Sharing knowledge and experience is a key factor in developing new solutions. One tool that Skanska has developed is a project database, which is available internally on our intranet. A selection of projects with environmental dimensions is also available and regularly updated on our public web site. This enables clients and other stakeholders to see a variety of environmental solutions that Skanska has applied. The design phase is critical to the environmental impact of a project. It is at this stage that technical solutions are specified. This becomes even more apparent if we bear in mind that the service life phase accounts for 80 to 90 percent of the environmental impact of a structure. To help designers with their decisions, Skanska has developed the Ecometer, a computer tool for comparing and selecting materials, building components and systems. The Ecometer is based on a life-cycle approach in which a structure’s contributions to climate change, acid rain and ozone depletion are factored in. It is being field-tested in projects in Finland ŽFigure 3.. In order to ensure that the materials in a structure do not contain unwanted chemicals, Skanska has developed a database of chemical products in Sweden. More than 3000 products have been evaluated and
compared with our own lists of prohibited chemicals and chemicals which are to be phased out.
The design phase is critical to the environmental impact of a project. w2x Finally, when a project is completed it is handed over to the customer together with all relevant documentation. A new element in this documentation is an environmental logbook. It contains descriptions of the structure’s environmental characteristics, including environmental product declarations for its constituent building materials.
Leadership in Environment Environmental management systems provide the necessary framework for integrating environmental issues into the various activities of a construction company. The ISO 14001 certification process is an important element in focusing the attention of the organization on these issues. This is, however, not sufficient to enable a company to become an environmental leader in its business sector. Environmental issues should become a natural element of the way the organization does business. Inspired by leading companies like Volvo, ABB and Novo Nordisk in other business sectors, we have developed the following guiding principles for leadership in environment:
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
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Sustainability and Construction
Figure 3 Results from the testing of the ecometer.
d d d d d d d
Management commitment. Dialogue with stakeholders. Accountability. Innovative climate. Good results. Communication. Management Commitment.
Needless to say, management commitment is the key to success. Not only is the commitment of top management important, but it is even more vital to get middle management on board. It is therefore important to be realistic in a large organization and let training and education, public discourse and good citizenship do most of the work. Whenever environmental performance has contributed to new orders or projects, this should be highlighted as a strong signal to show the benefits of integrating environment into business development. External recognition is also important, especially if it comes from prestigious and
162
respected organizations. The fact that Skanska is included in the Dow Jones Sustainability Group Index for the second year is perhaps more important internally than externally. Another example is the U.S. EPA’s Environmental Achievement Track Program, which recognizes companies and organizations that have voluntarily exceeded the requirements of environmental legislation. Three of the Skanska companies in the US are recognized on the program, being the only construction companies on the program.
Dialogue with Stakeholders Dialogue with stakeholders is another important but potentially resource-consuming area. It is therefore important to identify the key stakeholders with which an ongoing dialogue can be established. Clients are naturally the most important stakeholders for any company. A dialogue on the advantages and
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
opportunities provided by good environmental performance should be established whenever possible. It will, however, require sensitivity to client needs in order to get the message across.
Environmental management systems are very good tools to handle accountability. w3x Other stakeholders include non-government organizations ŽNGOs., public agencies and the local community. Two lessons can be learned from the experience gained. Firstly, dialogue means two-way communication and an NGO that is invited only to be informed about how well the company handles environmental issues will only come once, if at all. Secondly, it is usually too late to start the dialogue when the problems have materialized. Communication should have been established before.
Accountability Environmental management systems are very good tools to handle accountability. They have a logical structure and provide for the necessary procedures. What is important is to keep the attention level high. Here internal and external audits play an important role. Any non-conformity that is revealed has to be addressed in a serious and responsive way.
Innovative climate An innovative climate is always important. At Skanska we have encouraged all our employees to look for environmentally better alternatives, conserve natural resources and avoid materials or methods if we cannot properly assess their environmental risks. This is all included in our environmental policy. To further encourage good solutions and innovations we have established an internal environmental prize: the Skanska Award for
Outstanding Environmental Contribution. It will be awarded to projects or solutions that are positive for the environment, Skanska’s business development and relations with our clients. Winning contributions should be capable of providing inspiration to people developing environmental activities elsewhere in the Skanska Group.
Good results It is of course good results that count, and there are certainly many examples of small and large steps forward among all the 10,000 or so projects that are underway at any given time. Some of the good examples are presented in the project database described earlier, while others are disseminated within each business unit. The challenge is to establish procedures to distribute this knowledge in a highly decentralized organization. We are on the way, and with the help of hard work and modern information technology, our knowledge network will evolve further.
Communication Finally we should communicate what we stand for and what we are doing. Individual companies are often reluctant to take a proactive stance on environmental issues. Instead companies are leaving influence on policy making to business organisations, which in many cases means a more reactive approach. However, being proactive in relation to a given issue can mean good business. One example is climate change. The recent third report of the Intergovernmental Panel on Climate Change ŽIPCC. has shown that the scientific basis for the reality of rapid global warming is clear. The main contribution to this threat is from energy production using fossil fuels. Calculations from the European Commission show that 40 percent of energy consumption in the European Union is related to the use of buildings. At the same time, there is a potential for energy savings in existing buildings in the range of 20 to 30 percent. Given appropriate incentive sys-
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
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Sustainability and Construction
tems, this could be an important business opportunity for the construction sector. We therefore have good business reasons to communicate our position on climate change.
a platform for CSR. The first steps have already been taken. We believe that this work will take time, but that the process itself will be as important as the concrete results in the form of policies or codes of conduct.
All our communication should, of course, be based on facts that can be verified. Furthermore, internal communication should not be neglected, as all our employees are ambassadors who should be capable of communicating what the company is doing. Finally, communication should also consist of dialogue. Here the Internet offers great opportunities. It enables us to continuously update our information and pursue a dialogue with various stakeholders.
Introducing Corporate Social Responsibility Corporate Social Responsibility ŽCSR. can be seen as a framework for all types of issues where a company is regarded as having certain obligations toward society at large, because of direct or indirect effects from its business operations. CSR is also one of the three cornerstones of sustainable development, together with environmental and economical development. The drive toward corporate social responsibility is one of the most important trends affecting international corporations today. There are many factors behind demands for companies to assume social responsibility. A few of the most important factors are economic globalization, political transition and technological transformation. There are three general reasons why business should be involved in corporate social responsibility: d d d
Managing risks. Intangible corporate assets. Identity and brand value.
Following its intensive work with ISO 14001 and its move toward leadership in environment, Skanska has now decided to develop
164
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
Sustainability in the Construction Business — A Case Study Axel Wenblad
Skanska is among the world’s five largest construction companies, with constructionrelated activities and project development operations in some 60 countries. A strategic approach to environment was adopted in 1995. In 1998 a decision was made to introduce certified environmental management systems. The drivers behind these steps were pressures from the market, future legislation and public opinion. By the end of 2000, all business units of Skanska had environmental management systems certified according to ISO 14001. Newly acquired companies are required to have certified systems within two years after acquisition. While environmental management systems provide the necessary framework, more technical tools are also needed. Some examples of such tools are presented in this article. ISO 14001 is an important element in focusing the attention of the organization on environmental issues, but for leadership in environment, a number of guiding principles are also presented and discussed. Finally, corporate social responsibility ŽCSR. can be seen as a framework for all types of issues where a company is regarded as having certain obligations toward society at large, because of direct or indirect effects from its business operations. It is only logical that Skanska, following its work with ISO 14001 and the move toward leadership in environment, now has decided to develop a CSR platform. 䊚 2001 Elsevier Science Inc. All rights reserved.
Mr Axel Wenblad, MSc in biology and chemistry, joined Skanska in 1999 as vice President Environmental Affairs. Earlier assignments include AB Volvo, coordinating environmental affairs, the Swedish Environment Protection Board, Ministry of Environment and Government Committees in Sweden. During 1975–1980 Mr Wenblad had various assignments for FAO and UNEP in the field of marine pollution.
Corresponding author: Skanska AB, P.O. Box 1195, SE-111 91 Stockholm, Sweden; Tel.: q46-8-7538998; fax: q46-8-7533271; E-mail: [email protected].
Skanska is among the world’s largest construction companies. Annual sales are about US $15 billion. Skanska has some 80 000 employees. Its main markets are Sweden, Finland, Norway, Denmark, the U.S., the U.K., Poland, the Czech Republic, Argentina and Hong Kong. In addition to these main markets, Skanska is active in some 50 other countries throughout the world. Skanska’s mission is to develop, build and maintain the physical environment for living,
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
157
Sustainability and Construction
traveling and working. More and more of its clients today are seeking greater specialization and focus on their core operations. For most industrial and service sector companies, planning of premises and other construction-related services lie outside of their core operations. It is thus a natural step to seek a partner that can offer a comprehensive range of services in the construction process — everything from the development of a package solution through actual construction and responsibility for the maintenance of the building. This is a trend that is very clear for many commercial buildings. For large infrastructure projects — another core activity of Skanska — the situation is different. Many of these projects are publicly financed and thus subject to very rigorous public procurement procedures. There is also a trend toward developing infrastructure projects like roads and railways as Build-Own/Operate-Transfer ŽBOT. projects. Recent examples of BOT where Skanska is involved are a freeway between Helsinki and Lahti in Finland and a freeway through Santiago de Chile. Skanska is also active in the home-building sector as well as facilities management and the development of services related to management of commercial buildings. Its activities are thus very diversified, but our products have in common that they: d d d
d
d
have a long service life; consist of many components; are tailor-made for the site and to suit client demands; are utilized to host a variety of activities; and have a major impact on the use of resources in society.
The First Steps When environmental issues were originally introduced in Swedish business in general during the 1970s, the emphasis was very much on the risks, while the opportunities came in much later ŽFigure 1..
158
Figure 1 Opportunities and risks.
At Skanska we started to work with various projects focused on improving resource efficiency, both in the energy and waste management sector. Those projects were, however, generally small and based on local initiatives. In 1995 Skanska began to apply a strategic approach to environmental issues. This was a period when all large Swedish construction companies embraced the environment as a strategic issue. There were two main reasons for this strategic approach. The first reason was that the Swedish government at that time was looking at different waste streams in society and the potential for increasing reuse and recycling of materials. The construction industry, of course, wanted to avoid rigorous regulations and responded by taking voluntary initiatives to reduce construction waste. This led to a commitment from the Swedish construction sector to reduce waste by 50 percent. The second reason for the construction business to embrace environmental issues was a growing market demand. Although not very strong, the signals were coming from the public, property owners and public agencies. This was the environment in which Skanska was working, focusing more on opportunities and less on risks. In 1997, however, an unfortunate chemical accident occurred in a project in southern Sweden where Skanska was the contractor. A chemical product used for
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
sealing a railroad tunnel contaminated the groundwater leading to acute effects on grazing cattle. The media attention that followed in Sweden was intense. This had a profound impact on the way Skanska handled environmental issues. The most important lesson learned was that it is equally important to address both risks and opportunities.
Introducing ISO 14001 In 1998 the management of Skanska made a strategic and far-reaching decision. All units within the Group should introduce environmental management systems within less than two years Žby the end of 1999. and have them certified by the end of 2000. Some companies in other industrial sectors had made similar decisions earlier. The difference, however, was that they had a reasonably small number of factories to include in their systems, while Skanska had about 10 000 large and small projects, where the environmental systems would have to be applied in its day-to day activities. This was a great challenge, and although the approach varied between different Skanska business units in different markets, the goal was clear: introduce the system and get it certified according to the ISO 14001 standard by the end of 2000. The basis for an environmental management system is a continuous process in which environmental activities are planned, implemented and followed up, with demands for continuous improvement. Important elements of an environmental management system are: d
d
d
d
Training programs and information to employees. Initial environmental reviews and identification of significant environmental aspects. Formulation of objectives and action programs. Implementation of actions.
d
d
Internal follow-up Žmeasurements, internal environmental audits, management reviews.. External verification by accredited certification bodies during ISO 14001 certification and registration.
A system that is certified according to the ISO 14001 standard has thus been verified by an external organization that is accredited for this task. A few of Skanska’s business units in Sweden were certified even before the 1998 decision was made. All its business units in the U.S. obtained their certification during 1999 working very effectively to put the environmental management systems in place. By the end of 2000 all remaining business units reported that they had been certified. This includes Skanska Group headquarters, which is probably among the few corporate headquarters in an international business with its own certificate. Skanska was the first international construction company to be certified to ISO 14001.
Although ISO 14001 is a powerful management tool, it does not solve all problems. w1x One of the challenges today is to get Skanska’s recently acquired companies in Poland, the U.K., the Czech Republic, Norway and Hong Kong on board. Through the process of certification so far, however, we have gained considerable experience, which we will of course use to help these new Skanska companies. The other challenge is to maintain the environmental management systems and integrate them with other management systems, which we already do to a certain extent — especially in Skanska’s Swedish business units. One result of the introduction of ISO 14001 has been that all business units have worked
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
159
Sustainability and Construction
Table 1 Significant environmental aspects — an overview
Land use planning Design Construction Service life Renovation Demolition
Materials
Chemicals
Energy conservation
Soil contamination
⻬ ⻬
⻬ ⻬
⻬
⻬ ⻬ ⻬
⻬ ⻬
⻬
⻬ ⻬
to identify the significant environmental aspects of their projects. Table 1 provides a brief overview of environmental aspects that have been highlighted as particularly important. Their importance varies over the life cycle of a project, from land use planning to construction, service life and demolition.
A Project Organization Although ISO 14001 is a powerful management tool, it does not solve all problems. On the contrary, it becomes more apparent that you need a set of more technical tools to develop and communicate your performance. The challenge is not only to develop these tools, but also to put them into operation in a project-oriented organization: an organization where every product is unique, tailor-made and specified by the client. The contractor’s various roles have a great impact on the potential to influence environmental considerations and solutions in a project. In general, the aim is to enter the development process as early as possible. A project in which the contractor is also the developer of course provides the greatest degree of freedom. At the other end of the scale are contracts in which the client specifies every detail. This is particularly common for public procurement. Somewhere in between are ‘‘performance contracts’’ and ‘‘turnkey contracts’’. The construction of Scandic Hotel Simonkentta¨ in Helsinki is an example of a unique collaborative venture to enhance the environmental standard. The user, owner and con-
160
⻬
Waste
⻬ ⻬ ⻬ ⻬ ⻬
tractor have jointly developed a construction process that incorporates environmental considerations. The project covers procurement, construction and maintenance in a lifecycle perspective. An example of a more traditional project is ¨ the Oresund Bridge, which connects Denmark and Sweden. The contract was awarded through public procurement, with environmental performance playing an important role. Skanska’s experience from the environmental efforts in the project can be summarized in five key points: d d
d
d d
A client with clear environmental demands. A comprehensive environmental impact assessment. A commitment to environmental work by all parties. A skilled and responsible contractor. Good follow-up and evaluation programs.
A Construction Project: Key Stages This section describes, in general terms, the stages of a construction project, together with example of tools that have been developed ŽFigure 2.. Many large projects, in particular, include risks that have to be identified and addressed. In addition to technical, financial and legal risks, Skanska’s risk assessment also includes environmental issues and societal issues. In the environmental field, a risk assessment takes into account such aspects as significant environmental impact, relations with suppliers and clients and contaminated soil. Examples of
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
Figure 2 Basic elements of a construction project.
societal issues are labor practices, safety, human rights, community involvement and ethics. Sharing knowledge and experience is a key factor in developing new solutions. One tool that Skanska has developed is a project database, which is available internally on our intranet. A selection of projects with environmental dimensions is also available and regularly updated on our public web site. This enables clients and other stakeholders to see a variety of environmental solutions that Skanska has applied. The design phase is critical to the environmental impact of a project. It is at this stage that technical solutions are specified. This becomes even more apparent if we bear in mind that the service life phase accounts for 80 to 90 percent of the environmental impact of a structure. To help designers with their decisions, Skanska has developed the Ecometer, a computer tool for comparing and selecting materials, building components and systems. The Ecometer is based on a life-cycle approach in which a structure’s contributions to climate change, acid rain and ozone depletion are factored in. It is being field-tested in projects in Finland ŽFigure 3.. In order to ensure that the materials in a structure do not contain unwanted chemicals, Skanska has developed a database of chemical products in Sweden. More than 3000 products have been evaluated and
compared with our own lists of prohibited chemicals and chemicals which are to be phased out.
The design phase is critical to the environmental impact of a project. w2x Finally, when a project is completed it is handed over to the customer together with all relevant documentation. A new element in this documentation is an environmental logbook. It contains descriptions of the structure’s environmental characteristics, including environmental product declarations for its constituent building materials.
Leadership in Environment Environmental management systems provide the necessary framework for integrating environmental issues into the various activities of a construction company. The ISO 14001 certification process is an important element in focusing the attention of the organization on these issues. This is, however, not sufficient to enable a company to become an environmental leader in its business sector. Environmental issues should become a natural element of the way the organization does business. Inspired by leading companies like Volvo, ABB and Novo Nordisk in other business sectors, we have developed the following guiding principles for leadership in environment:
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
161
Sustainability and Construction
Figure 3 Results from the testing of the ecometer.
d d d d d d d
Management commitment. Dialogue with stakeholders. Accountability. Innovative climate. Good results. Communication. Management Commitment.
Needless to say, management commitment is the key to success. Not only is the commitment of top management important, but it is even more vital to get middle management on board. It is therefore important to be realistic in a large organization and let training and education, public discourse and good citizenship do most of the work. Whenever environmental performance has contributed to new orders or projects, this should be highlighted as a strong signal to show the benefits of integrating environment into business development. External recognition is also important, especially if it comes from prestigious and
162
respected organizations. The fact that Skanska is included in the Dow Jones Sustainability Group Index for the second year is perhaps more important internally than externally. Another example is the U.S. EPA’s Environmental Achievement Track Program, which recognizes companies and organizations that have voluntarily exceeded the requirements of environmental legislation. Three of the Skanska companies in the US are recognized on the program, being the only construction companies on the program.
Dialogue with Stakeholders Dialogue with stakeholders is another important but potentially resource-consuming area. It is therefore important to identify the key stakeholders with which an ongoing dialogue can be established. Clients are naturally the most important stakeholders for any company. A dialogue on the advantages and
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
Sustainability and Construction
opportunities provided by good environmental performance should be established whenever possible. It will, however, require sensitivity to client needs in order to get the message across.
Environmental management systems are very good tools to handle accountability. w3x Other stakeholders include non-government organizations ŽNGOs., public agencies and the local community. Two lessons can be learned from the experience gained. Firstly, dialogue means two-way communication and an NGO that is invited only to be informed about how well the company handles environmental issues will only come once, if at all. Secondly, it is usually too late to start the dialogue when the problems have materialized. Communication should have been established before.
Accountability Environmental management systems are very good tools to handle accountability. They have a logical structure and provide for the necessary procedures. What is important is to keep the attention level high. Here internal and external audits play an important role. Any non-conformity that is revealed has to be addressed in a serious and responsive way.
Innovative climate An innovative climate is always important. At Skanska we have encouraged all our employees to look for environmentally better alternatives, conserve natural resources and avoid materials or methods if we cannot properly assess their environmental risks. This is all included in our environmental policy. To further encourage good solutions and innovations we have established an internal environmental prize: the Skanska Award for
Outstanding Environmental Contribution. It will be awarded to projects or solutions that are positive for the environment, Skanska’s business development and relations with our clients. Winning contributions should be capable of providing inspiration to people developing environmental activities elsewhere in the Skanska Group.
Good results It is of course good results that count, and there are certainly many examples of small and large steps forward among all the 10,000 or so projects that are underway at any given time. Some of the good examples are presented in the project database described earlier, while others are disseminated within each business unit. The challenge is to establish procedures to distribute this knowledge in a highly decentralized organization. We are on the way, and with the help of hard work and modern information technology, our knowledge network will evolve further.
Communication Finally we should communicate what we stand for and what we are doing. Individual companies are often reluctant to take a proactive stance on environmental issues. Instead companies are leaving influence on policy making to business organisations, which in many cases means a more reactive approach. However, being proactive in relation to a given issue can mean good business. One example is climate change. The recent third report of the Intergovernmental Panel on Climate Change ŽIPCC. has shown that the scientific basis for the reality of rapid global warming is clear. The main contribution to this threat is from energy production using fossil fuels. Calculations from the European Commission show that 40 percent of energy consumption in the European Union is related to the use of buildings. At the same time, there is a potential for energy savings in existing buildings in the range of 20 to 30 percent. Given appropriate incentive sys-
A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.
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tems, this could be an important business opportunity for the construction sector. We therefore have good business reasons to communicate our position on climate change.
a platform for CSR. The first steps have already been taken. We believe that this work will take time, but that the process itself will be as important as the concrete results in the form of policies or codes of conduct.
All our communication should, of course, be based on facts that can be verified. Furthermore, internal communication should not be neglected, as all our employees are ambassadors who should be capable of communicating what the company is doing. Finally, communication should also consist of dialogue. Here the Internet offers great opportunities. It enables us to continuously update our information and pursue a dialogue with various stakeholders.
Introducing Corporate Social Responsibility Corporate Social Responsibility ŽCSR. can be seen as a framework for all types of issues where a company is regarded as having certain obligations toward society at large, because of direct or indirect effects from its business operations. CSR is also one of the three cornerstones of sustainable development, together with environmental and economical development. The drive toward corporate social responsibility is one of the most important trends affecting international corporations today. There are many factors behind demands for companies to assume social responsibility. A few of the most important factors are economic globalization, political transition and technological transformation. There are three general reasons why business should be involved in corporate social responsibility: d d d
Managing risks. Intangible corporate assets. Identity and brand value.
Following its intensive work with ISO 14001 and its move toward leadership in environment, Skanska has now decided to develop
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A. Wenblad, Corporate Environmental Strategy, Vol. 8, No. 2 (2001) 1066-7938/01/$ - see front matter. 䊚 2001 Elsevier Science Inc. All rights reserved.