Amid intensifying global measures to decarbonise the built environment, recent policy developments are set to reshape sustainability in construction. The European Parliament’s commitment to the Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) signals stronger regulatory frameworks for environmental sustainability in construction. These directives place new demands on construction firms to conduct Whole Life Carbon Assessment and report on Embodied Carbon, aiming for greater transparency across supply chains and environmental and social performance. Companies must demonstrate commitment to circular economy principles and life cycle thinking in construction to remain compliant and competitive internationally.
AECOM’s announcement of a US$1 billion offering of senior unsecured notes is viewed as a financial move aligned with sustainable building investments. Strategic refinancing through a simultaneous tender offer suggests more flexibility in future capital allocation, potentially toward net zero Whole Life Carbon projects. With Life Cycle Cost becoming a critical decision factor in project planning and sustainable infrastructure procurement, financial mechanisms must increasingly support carbon neutral construction and low carbon building practices that prioritise energy-efficient buildings and renewable building materials.
The UK government's adjustments to its Contracts for Difference scheme aim to stabilise the clean energy investment landscape. This is crucial to green construction and large-scale integration of renewable energy technology across the construction sector. Developers of sustainable building design projects will benefit from improved access to clean power contracts, facilitating energy-efficient operations and carbon footprint reduction throughout the construction lifecycle.
TotalEnergies’ launch of the Shaped EAC certificate marks a significant step toward accurate tracking of clean energy usage, a challenge for large, power-intensive building projects. This development offers construction firms improved tools to validate on-site use of renewable energy in real time, reinforcing commitments to low carbon design and reducing the Embodied Carbon in materials, critical for achieving targets related to net zero carbon buildings.
Innovations in offshore infrastructure, such as the Dutch seaweed and wind energy project partially funded by Amazon, highlight the intersection of green infrastructure and sustainable urban development. These pilot programmes demonstrate how Circular Economy in construction can extend beyond buildings to influence renewable material sourcing and new modes of low-impact construction that contribute to climate mitigation through nature-based solutions.
Tetra Tech’s US$94 million contract for climate resilience highlights the growing integration of environmental product declarations (EPDs), sustainable material specification, and building lifecycle performance considerations in emergency preparedness planning. As climate-related risks intensify, sustainable building practices must incorporate lifecycle assessment and eco-design for buildings, reinforcing the sector's role in delivering long-term resilience in both infrastructure and community development.
