For decades, the 2.1 trillion dollar construction industry has significantly contributed to the U.S. economy, shaping our cities, skylines and communities. Its impact goes far beyond aesthetics and functionality. A 2023 report by the United Nations Environment Programme revealed a sobering fact: The construction sector is the world's largest greenhouse gas emitter, accounting for a staggering 37% of emissions. This fact underscores the urgent need for the industry to embrace sustainable practices.
Many construction companies are doing just that, along with Samsung, which is leading the charge toward energy-efficient and sustainable projects by producing environmentally friendly products from inception to end use. However, more companies still need to get on board if the industry aims to achieve the International Energy Agency's Net Zero Emissions by 2050 Scenario. Government support can play an important role, too, as seen in the Federal Buy Clean Initiative.
Here are the factors pushing construction companies to adopt greener practices, their innovative strategies, and the benefits they bring to their bottom line.
External pressures pushing for change
The construction industry is facing a multi-pronged push for eco-conscious practices. Regulatory bodies are implementing stricter environmental standards, while consumer preferences are evolving, too. These pressures exist across all industries, but few are feeling the impact as much as the homebuilding industry.
Regulatory landscape
Governments worldwide have enacted stricter regulations to curb emissions and resource depletion. For example, in May 2024, the Biden administration introduced new rules that speed up permits for clean energy and require federal agencies to weigh damaging effects on the climate more heavily before approving projects. This comes after the U.S. Environmental Protection Agency (EPA) strengthened rules on air quality in February. More regulation is on the way.
That makes investing in sustainable alternatives great for the environment — and the future of the industry — especially when countries across the globe are all vying for the same natural resources and materials. Doing so can also help companies secure more government contracts and maintain a leading position on sustainability.
Consumer demand
Today's consumers are increasingly environmentally conscious across a range of industries, including construction and real estate. In fact, a 2022 report by Capterra reports that 88% of consumers consider the sustainability of a product before purchase, at least sometimes, and they are more willing to pay a premium for it. They also walk the walk, with 84% of consumers buying a sustainable product in the previous six months.
Pressure is also coming from within, especially from younger generations. The Deloitte Global 2024 Gen Z and Millennial Survey, for example, stressed the importance of sustainability among them and the belief that businesses should drive change. Gen Zs and millennials are making businesses feel this through their career decisions and consumer behaviors. This shift in consumer preferences means incorporating sustainability into projects, which can be a significant differentiator and a key sales driver. It can also help you build a team for the future.
Innovative strategies for sustainable construction
The construction industry is responding to external pressures with a wave of innovation.
Here are some key strategies companies are adopting:
· Resource innovation: Traditional building materials like concrete are major contributors to carbon emissions. Sustainable alternatives like mass timber and cross-laminated timber (CLT) offer a lower carbon footprint. Additionally, modular construction methods, which utilize prefabricated components, minimize waste and enhance efficiency.
· Eco-conscious decisions: Construction companies are making informed material choices with sustainability in mind. Replacing traditional materials with sustainable alternatives like CLT, bamboo and composite decking reduces the environmental impact and can lead to long-term savings. They are also opting for eco-friendly products and appliances, such as Samsung Bespoke 4-Door Flex™ refrigerator. Samsung's energy management tool, SmartThings Energy, also allows users to monitor and manage energy use and receive energy-saving tips and alerts to help lower their electricity bills.
· Architecture and technique innovations: Innovative architectural construction techniques, such as modular buildings and passive homes, can enhance efficiency and reduce waste. Modular construction can involve prefabricating building components off-site, minimizing on-site construction time and reducing material waste. A passive home design is focused on a rigorous level of energy efficiency while maintaining a high level of comfort.
· Waste reduction and energy efficiency: Construction companies are electrifying their fleets of vehicles, utilizing renewable energy sources on construction sites and adopting paperless workflows — all contributing to a significant reduction in their environmental footprint. Design-wise, they are opting for energy-efficient systems and appliances, such as washing machines that allow you to manage your power usage and reduce energy use from your phone.
Embracing the benefits of sustainable building
Samsung recognizes the importance of sustainability throughout the homebuilding life cycle and embraces it. Their commitment to responsible sourcing aligns perfectly with the industry's need for eco-friendly materials.
While moving towards sustainable practices presents significant opportunities, decision-makers at Samsung and elsewhere must also consider the challenges they will likely face. One concern is the potentially higher upfront costs associated with innovative materials and building techniques. However, the long-term benefits of sustainable practices far outweigh the challenges.
Sustainable construction can lead to:
· Cost savings: Energy-efficient buildings and Energy Star-certified appliances translate to lower operating costs for homeowners, leading to higher property values and potentially increased sales margins for developers. In addition to a full range of Energy-Star-certified products, Samsung offers the power-saving AI Energy Mode within SmartThings Energy, which saves up to 70% of energy on select TVs and home appliances.
· Increased efficiency: Innovative building methods like 24-on-center framing and modular construction reduce waste and construction time, leading to faster project completion and lower overall costs.
· Waste reduction: Sustainable building practices minimize waste generation throughout construction, reducing landfill burden and environmental impact. Since 2009, Samsung has reused over 409,000 tons of recycled plastics globally in products and is on track to reach its goal of 500,000 tons by December 31, 2030. Samsung is also committed to eliminating all plastics in mobile packaging and incorporating recycled material in all new mobile products by December 31, 2025.
· Positive reputation: Building green projects enhances a company's reputation as an environmentally responsible and forward-thinking leader, attracting eco-conscious consumers and investors.
Building a sustainable future together
The construction industry is at a crossroads. By embracing sustainable practices, homebuilders can contribute by producing environmentally conscious projects that unlock a wealth of business advantages. With its commitment to sustainable materials, energy-efficient appliances and innovative smart home technology, Samsung is a valuable partner for construction firms embarking on their green building journey.
In fact, Samsung Electronics America has been honored with the 2024 Energy Star® Partner of the Year Award by the EPA. The recognitions include its eleventh Sustained Excellence Award for Product Brand Owner for outstanding contributions to protecting the environment by developing energy-efficient products and its second Sustained Excellence Award for Energy Management for achievements in operational energy efficiency. Samsung is the only company recognized with two Sustained Excellence Awards in 2024.
Samsung SmartThings, for example, allows for the automation and monitoring of home energy usage. Imagine a scenario where residents can easily track their energy consumption in real time, identifying areas for improvement and adjusting their habits accordingly. SmartThings Pro extends its connected home technology to business environments, promoting energy savings and operational efficiency in construction projects.
This type of use-case scenario resonates with homebuyers, who can visualize the energy savings they would achieve by living in a sustainable home. The technology also exemplifies Samsung's dedication to building a future where innovation meets sustainability, empowering builders and homeowners to make a positive impact.
Read more about how Samsung is committing to sustainability with new programs. Also check out the range of energy-efficient appliances that support a more sustainable home.