Sustainable construction requires external cross-sector collaboration to cut emissions, reduce embodied carbon, and drive innovation.
By Danielle Hurley, ESG Program Lead at Linesight
The construction industry faces mounting pressure to reduce its environmental impact, which accounts for 37% of global carbon emissions. While individual companies have made strides in sustainable building practices, the complexity of modern construction projects requires coordinated action across the entire value chain. From material suppliers to architects, and from policy makers to insurance providers, each player holds a piece of the sustainability puzzle. Understanding how these pieces fit together – and fostering the relationships that make collaboration possible – has become fundamental to achieving meaningful environmental improvements.
The construction industry faces unique challenges in its sustainability journey, particularly when it comes to reducing environmental impact. A significant challenge in the emissions reduction landscape is the approach to Scope 1 emissions – those direct emissions from owned or controlled sources, including natural gas usage and onsite fuel burning. Scope 1 is often minimized in emission reduction conversations because it is difficult to abate while continuing business growth. Unlike Scope 2 emissions, which can be addressed through renewable energy certificates and power purchase agreements, Scope 1 reductions often rely on emerging technologies that lack established certification frameworks and third-party verification. Meanwhile, Scope 3 emissions (from the supply chain) are typically orders of magnitude higher and have clearer process roadmaps, making them a more common focus for construction companies.
Another significant challenge is embodied carbon – which refers to the carbon footprint of construction materials throughout their lifecycle, from manufacturing to transportation. This aspect has gained increased attention in recent years, largely driven by the development and adoption of emerging technologies and guidance that make measurement and verification more accessible. As these tools have matured, companies increasingly recognize that true sustainability extends far beyond the construction site itself. The adoption of lower-carbon concrete, sustainably sourced timber, and recycled steel can contribute to lowering embodied carbon, but these efforts require collaboration across supply chains to be effective. Cost and scheduling constraints also present obstacles, necessitating innovative solutions that balance environmental and business considerations.
One of the most effective approaches to fostering collaboration is establishing dedicated ESG subcommittees early in the organizational structure. These committees will serve as central hubs for coordinating sustainability efforts and ensuring that diverse and strategic perspectives are considered in planning and implementation. They can help bridge the gap between corporate sustainability goals and project-level execution, while also creating a space for open dialogue about sustainability challenges and solutions.
Stakeholder engagement should extend beyond the internal team to include architects, engineers, suppliers, regulators, and financial institutions. A holistic approach can ensure that sustainability efforts are both ambitious and achievable. Engaging with suppliers on emissions data can help construction firms make informed material choices, while understanding frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and International Sustainability Standards Board (ISSB) can help companies identify, assess, and report climate-related risks.
One often-overlooked aspect of stakeholder engagement is creating an environment where people feel comfortable asking questions about sustainability, regardless of their expertise level. Sustainability remains a rapidly evolving field, and fostering open dialogue is crucial for mutual learning and problem-solving. Many organizations underestimate how much still needs to be figured out, particularly when defining boundaries around ESG initiatives. The way companies set these boundaries can significantly impact their sustainability goals and how they measure success.
One key lesson learned by industry leaders is the importance of understanding the broader regulatory landscape of sustainability and ESG. Regulations are constantly changing, often on a global scale, and many are interconnected. Successful organizations stay ahead by not only complying with current requirements but also anticipating future developments that might affect their business one to two years down the line. Organizations that proactively adapt to these changes will be better positioned to avoid disruptions and capitalize on sustainability-related incentives. Even minor policy shifts can have significant financial and operational implications, underscoring the need for businesses to stay informed and adaptable.
True sustainability in construction requires collaboration not just within the industry but also across sectors. Partnerships between construction firms and technology companies, for example, have led to the development of AI-powered energy efficiency models and digital twins that optimize building performance. These tools help construction managers simulate various sustainability scenarios and make data-driven decisions that minimize energy consumption and emissions. Similarly, collaborations with waste management companies have resulted in innovative material recycling programs that reduce landfill contributions. For example, some companies are implementing circular economy strategies where construction waste is repurposed into new building materials, significantly reducing waste and demand for virgin resources.
Public-private partnerships also play a crucial role in advancing sustainability goals. Governments and municipalities can provide incentives for green construction projects, while private sector innovations help accelerate the transition to sustainable practices. Successful initiatives such as green bonds, carbon offset programs, and tax credits for energy-efficient buildings demonstrate the power of aligning financial incentives with sustainability efforts. By working together, the public and private sectors can create an ecosystem that fosters innovation, supports economic growth, and drives meaningful environmental impact.
The intersection of industry leadership and policy making plays a crucial role in accelerating sustainability efforts. One of the most compelling aspects of this relationship is its impact on the business case for sustainability initiatives. While traditional business metrics often focus on short-term returns, sustainability projects typically operate on a 5–10-year ROI timeline. Policy support, particularly through financial incentives and compliance requirements, can help bridge this gap and make the business case more compelling.
Beyond compliance, sustainability initiatives can also enhance brand reputation, attract investors, and create new business opportunities. Companies that position themselves as sustainability leaders often gain a competitive advantage, as clients and partners increasingly prioritize green building certifications such as LEED and BREEAM. Additionally, a strong ESG strategy can help attract top talent, particularly among younger workers who prioritize environmental and social responsibility in their career choices.
Sustainability in construction is not a solitary pursuit. It requires the collective effort of all stakeholders, from material suppliers to policy makers, to drive meaningful change. By fostering collaboration, leveraging data, navigating regulatory landscapes, and building strong cross-sector partnerships, the construction industry can transition toward a more sustainable future. While challenges remain, the momentum toward sustainability continues to grow, proving that coordinated efforts can lead to both environmental and economic benefits. The key to success lies in recognizing that no single entity can solve these challenges alone – but in a collaborative environment, the industry can create lasting, positive change.
About the Author:
Danielle Hurley is the ESG Program Lead at Linesight, where she has driven significant organizational progress. She started her career at Linesight in 2022 as a Cost Engineering intern. In a span of two years, she evolved to the position of ESG Program Lead, having spearheaded the creation of Linesight’s first two ESG reports, amongst other notable achievements. Her outstanding work was acknowledged by Linesight’s parent company, the IPS Enterprise, who sought her expertise to advise on their own ESG reports. Her innovative approach to sustainability has led to the company setting ambitious targets, including achieving 100% renewable energy for all IPS subsidiaries by 2030.
Danielle’s leadership extends beyond sustainability. As the co-lead of the Women in Linesight (WiL) Employee Resource Group, she has been pivotal in fostering an inclusive and supportive environment at Linesight. Her efforts have not only strengthened the group but have also contributed to the development of global DE&I policies at Linesight, ensuring that diversity, equity, and inclusion are deeply embedded across the organization’s culture and practices.
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