Investing in Sustainability

Investing in Sustainability

22/03/2021

According to Irish Building Magazine, Ireland-based AEC firms are on track to invest an average of €800,000 in sustainability initiatives over the next five years. You can read the article in full here: https://www.irishbuildingmagazine.ie/2021/03/22/irelands-aec-firms-to-invest-on-average-e800k-in-sustainability-over-five-years/

The figure above is based on European research undertaken by Autodesk, in partnership with global consulting firm, Frost & Sullivan and it applies similarly to UK-based architecture, engineering, construction and manufacturing companies. This research was conducted amongst 600 business decision-makers in the AEC and manufacturing industries located across Norway, Sweden, Finland, Denmark, Iceland, Belgium, the Netherlands, Luxembourg, Ireland and the UK. According to the findings, construction companies in the Nordics countries are leading the way when it comes to a focus on industry sustainability. More than 90 percent of the businesses surveyed in that region have a dedicated sustainability team. And Ireland looks to be following suit. Of the business leaders surveyed in Ireland and the UK, 95 percent reported that their organisations are investing in improved workflows, including reducing waste and energy consumption, as part of their sustainability initiatives and they identified sustainability as a key area for business investment over the coming years. In fact, more than half of AEC firms in Ireland and the UK are investing in recruitment and training as part of their sustainability objectives, likely within the next two years.

Given the broad meaning of the term ‘sustainability’ in the context of the built environment, it was interesting to see the report break this down into areas of immediate or priority focus for the industry. According to this particular report, members of the AEC sector see green building as the most important area for achieving future sustainability impact goals, followed by low carbon innovation. Circular design and supporting vulnerable communities affected by climate change also make it onto the list of industry priorities. Despite the very real and important benefits of greater sustainability across the built environment, lack of financial resources and access to skills and training remain significant challenges for a large cohort of the industry.

It was positive to see that more than half of all leaders surveyed believe sustainable practices improve overall project quality, which is something that we here at McKeon Group heartily agree with. One particularly enlightening part of the report covered the motivation behind this increase in sustainability initiatives across the industry. When asked why their company was embracing sustainability more than 90 percent of those in Ireland and the UK cited customer retention as the most important factor, and this was followed by competitive advantage at 64 percent, customer expectations at 83 percent, supply chain and partner expectations at 54 percent, attracting talent and employee satisfaction was cited by 39 percent and investor relations came in at 44 percent. Frankly, it is surprising and somewhat alarming that environmental concerns did not even crack the top six reasons! 

Positioning technology as  having a pivotal role to play in driving sustainability, the Autodesk/Frost & Sullivan survey also probed current and expected investment in technology and more than 77 percent of respondents confirmed that they are already investing in technology. Of course, confirmation bias is inherent in such surveys, particularly online, so it is difficult to determine just how reflective of the entire AEC ecosystem this stat actually is… 

About McKeon Group

Established in 1950 and ISO certified for more than two decades, McKeon Group offers expert construction, fitout and building services. The family-run Group delivers projects, services and maintenance across a range of sectors for State, local authority, FDI and private clients. For more information, contact: www.mckeon.ie