The Paris agreement on climate change established a target of holding the global average temperature increase to no more than 1.5⁰C above pre-industrial levels to avoid a climate catastrophe.
In Aotearoa New Zealand, the Climate Change Response (Zero Carbon) Amendment Act 2019 sets out reduction targets and initiatives to help the country reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050.
Construction sector crucial to reducing carbon emissions
The construction sector has a critical role to play in addressing climate change and reducing Aotearoa’s emissions but we know little about how businesses within the sector are preparing to address climate change challenges.
A study by the University of Otago Business School and BRANZ examined how construction companies understand and prepare for climate change. The research team undertook eight in-depth case studies with companies on the cutting edge of delivering sustainable buildings. A key aspect was to assess how companies embed addressing climate change into their organisational practices and cultures.
Enablers for zero-carbon construction
Case studies highlighted enabling activities carried out by construction companies to support their preparedness for addressing climate change:
- Accreditations and collaborations: Participants discoussed their need to have proven low-carbon solutions and technologies and outlined the benefits of working with others to share information.
- Organisational values: Some saw developing a climate change culture within their organisation as a key point of difference in the sector. One company executive noted that ‘having a sense of who you are as a company’ helps drive decision making for sustainability and climate change.
- Changing attitudes: All participants were pleased that change is occurring in the construction sector. They noted that some tenders include social and environmental outcomes and a preference to work with clients who value sustainability. They also saw a growing shift towards using quality and sustainability as measures of success ahead of cost or simply meeting consenting requirements.
- Role models and leaders: Participants perceived that role models and leaders in the sector help to influence change, and many saw themselves in this role. They spoke about larger companies leading change, which then trickles down, and would welcome case studies of what companies are doing to address climate change.
Addressing barriers to uptake
Despite the many enablers supporting companies to embed climate change into their organisational practices and cultures, key barriers were identified that are stopping the readiness of many to address climate change:
Lack of regulation and pol icy: Participants identified a need for policy change roadmaps to help them prepare for future changes as well as urgent changes to the New Zealand Building Code to meet international standards. The limited and often poor-quality information shared in the industry also needs to be addressed.
- Lack of national and local government coordination: Many participants commented on difficulties working with government departments that might have top-level statements about sustainability and climate change but these are poorly understood at ground level. Interpretations of the Building Code across councils also cause delays, extra work and stress.
- Costs: Several participants mentioned that carbon is where the greater costs are in the construction process so reducing carbon can reduce operational costs. The focus also needs to change to both the capital and operating costs of a building as a focus on capital costs alone provides no business incentive to change.
- Resistance to change: Most participants mentioned resistance to change in some form – such as the market, the construction sector or people within their own organisation.
- Risk perception: The construction sector was described as a high-risk, reactive industry, which doesn’t bode well for climate change mitigation and adaptation practices. Participants felt that considerations need to include the risks of not mitigating and adapting.
- Clients’ mindsets: Clients are a key component driving the construction process. Participants mentioned issues such as shifting clients’ mindsets away from large houses. Showing them options that include sustainability and reduced carbon can encourage the adoption of alternative solutions in design and construction.
Embedding climate change practices and cultures
The research identified several key actions that companies in the construction sector could undertake to get ready for climate change and embed its impact into their organisational practices and cultures:
- Develop understanding: Learn about the technologies, materials and processes that enable a climate-ready company. Appreciate that this could be an opportunity for a company and does not always have to be a cost.
- Change practices: Many construction companies do not have significant fixed assets so they can change their practices relatively easily. Mindsets are changing quickly, and companies need to understand their market and business environment and be prepared for ongoing change in a dynamic environment.
- Collaborate across the sector: Identify who has tools to help understand carbon emissions and understand the metrics around low-carbon, high-performance buildings.
Climate change and sustainability were discussed by some participants as the next health and safety issue for business. They saw sustainability and climate change becoming embedded in organisational practices and operations.
The key to addressing organisational change is considering:
- the material culture – the things you have
- the practices – the things you do
- values, norms and meanings – the way you think.
Together, all three aspects can embed a climate culture that proactively creates readiness for both the impacts and risks associated with climate change.