ESG frameworks often overlook the complexity of construction carbon and cost estimating, but accurate data-driven insights are essential for achieving true sustainability. Here’s why…
Sustainability in the construction industry is a growing priority, especially as the sector faces increased pressure to meet carbon reduction targets. Many construction companies are turning to Environmental, Social, and Governance (ESG) frameworks to guide their efforts.
ESG is undoubtedly a valuable tool for assessing a company’s overall sustainability performance, but it often fails to provide the depth needed for true sustainability in construction. ESG frameworks typically offer a broad, high-level view, which does not capture the granular details that are critical for carbon reduction in construction projects.
In this article, we will explore why ESG alone is not enough and why accurate carbon and cost estimating at the resource level is essential. We will also examine how Sterling’s SaaS solution, combined with its Lifecycle module, helps the construction industry bridge this gap by offering precise cost and carbon estimating capabilities throughout the entire asset lifecycle.
The ESG framework: What is misses
ESG frameworks are widely used across industries to measure sustainability performance. In construction, these frameworks typically focus on environmental factors such as energy usage, waste management, and carbon emissions. However, ESG frameworks tend to overlook the detailed data needed to estimate carbon emissions accurately at a project level. As a result, companies may report on carbon reductions but fail to understand the full extent of their carbon footprint during the construction process.
According to the UK Green Building Council (UKGBC) (UKGBC), while ESG frameworks are valuable for setting broad sustainability goals, they often lack the specific insights required for implementing actionable sustainability strategies in construction projects. ESG is typically used to evaluate overall corporate sustainability performance, but it does not provide the granular data needed to reduce carbon emissions at the resource level.
This leaves a critical gap, one that can only be filled with accurate, detailed carbon and cost estimating.
Why accurate carbon estimating is key for sustainability
Carbon estimating in construction is more than just measuring emissions, it is about understanding how every aspect of a construction project contributes to its environmental impact. The key to accurate carbon estimating lies in capturing data at the resource level. This means calculating the carbon emissions associated with individual resources used in the construction process, including labour, plant, and material. Only when these resources are measured precisely can a true picture of the project’s carbon footprint be formed.
Sterling’s SaaS solution provides a robust platform for both cost and carbon estimating at the resource level. By integrating carbon emissions data for each resource used in a construction project, Sterling ensures that companies can accurately measure their environmental impact. This approach allows companies to make informed decisions about resource use, material choices, and construction methods that directly contribute to sustainability goals.
Furthermore, Sterling’s Lifecycle module tracks these estimates throughout the entire asset lifecycle, from the planning stage through to operation and decommissioning. This continuous tracking allows for better long-term management of carbon emissions, helping companies monitor their progress in real time and make adjustments as needed.
In addition, the The Carbon Trust has highlighted the importance of incorporating carbon data into cost estimation for more accurate decision-making in construction. The integration of these two elements enables construction firms to make decisions that are not only cost-effective but also environmentally sustainable. (Source: Carbon Trust)
The role of cost estimating in sustainability
Cost estimating is an integral part of any construction project, and it plays a vital role in driving sustainability. Traditionally, cost estimates in construction focus solely on the financial aspects, but they can no longer ignore the environmental impact. The construction industry is under increasing pressure to integrate carbon and cost estimating to create a more sustainable and cost-effective construction process.
Sterling’s platform integrates both cost and carbon estimating, providing a comprehensive view of a project’s financial and environmental impact. By combining these two elements, Sterling enables construction firms to manage their budgets while making environmentally conscious decisions. For example, if a material has a higher carbon footprint, it may come with higher costs, and vice versa. Being able to evaluate both together allows companies to optimise their resources and choose the most sustainable options.
The RICS (Royal Institution of Chartered Surveyors) emphasises the need for more accurate cost estimates that include carbon data. Their reports highlight the increasing importance of integrating carbon measurements with cost management in construction projects. (Source: RICS)
True carbon estimating: Going beyond the surface
The traditional approach to carbon estimating often looks at a project as a whole, focusing on high-level emissions from energy use and waste management. While these are important factors, they are only part of the equation. True carbon estimating requires a deeper look at individual resources involved in the construction process.
Labour, plant, and material are the primary resources that drive carbon emissions in construction, and each resource contributes differently. For example, the carbon footprint of plant equipment can vary significantly depending on the type of machinery used, its fuel efficiency, and its operating hours. Similarly, materials like concrete or steel have vastly different carbon footprints depending on how they are sourced, manufactured, and transported.
Sterling’s solution allows construction firms to estimate carbon emissions at this resource level, providing a detailed understanding of where carbon is being generated throughout the construction process. This level of detail ensures that companies can make targeted decisions to reduce their carbon impact.
This is one of the reasons we built functional integrations to Building Transparency’s EC3 tool and 2050 Materials . These integrations allow for accurate Environmental Product Declaration (EPD) data to be assigned to resources in our system. By leveraging real-time data from these sources, Sterling provides precise carbon emissions values for materials, which helps construction companies make informed, sustainable decisions. This ensures that carbon data is not just a theoretical estimate but is tied directly to the materials and resources that will be used in the construction process.
The importance of this approach is recognised by Building Transparency, a leading organisation in construction carbon data. Their EC3 tool is an example of how granular carbon data can be integrated into the construction estimating process to drive better decision-making. (Source: Building Transparency)
ESG vs. carbon estimating: Why the industry needs both
While ESG frameworks are essential for setting overarching sustainability goals, they are not enough to drive real change in the construction industry. Carbon and cost estimating at the resource level is critical for achieving actionable results. ESG can set the stage for sustainability, but it is through detailed carbon and cost estimations that construction companies can implement real solutions.
Sterling’s platform combines both ESG and carbon estimating, ensuring that companies have the tools to track their sustainability goals while managing their environmental impact at the resource level. This combination empowers companies to reduce their carbon emissions, optimise resource usage, and deliver projects that are both cost-effective and sustainable.
By integrating these two elements, Sterling offers a holistic approach to sustainability in construction, helping companies move beyond general ESG targets and towards concrete, data-driven actions that will make a real difference in reducing the industry’s carbon footprint.
In conclusion, while ESG frameworks are an important step towards sustainability in the construction industry, they are not sufficient on their own. Accurate carbon and cost estimating at the resource level is crucial for understanding and reducing a project’s true environmental impact. Sterling’s SaaS solution, with its focus on resource-based carbon and cost estimating, provides construction firms with the tools they need to make informed decisions and achieve meaningful sustainability outcomes.
The construction industry needs to go beyond high-level ESG reports and embrace detailed, resource-level carbon estimating. By doing so, it will not only meet sustainability targets but also drive long-term change towards a more sustainable, cost-effective future.
If you’re interested in learning how Sterling | Cost & Carbon Estimating’s solution can help your business integrate cost and carbon estimating into your construction projects, contact us today www.sterling-dcs.com | info@sterling-dcs.com | +44 (0)1245 808114
