There is a move afoot to digitalise construction, across the board. This could well be the brahmastra for the government to meet the ambitious sustainable development goals (SDGs) India has committed to. So, what does digitising a single industry have to do with SDGs, you may ask.
The construction industry is responsible for about 37 percent of all energy-related carbon dioxide emissions globally, according to the 2021 Global Status Report for Buildings & Construction published by the United Nations Environment Programme. It is important for India to take heed and action. Already about 20 percent of CO2 emissions and 33 percent of energy use comes from the construction industry. As it steps up urbanisation from 35 percent to 50 percent, India is building at a rapid pace. These numbers will then rise in the same decades when India has actually promised a reduction of emissions to comply with the Paris Agreement.
The global industry has taken heed. A McKinsey report based on interviews with over 100 global construction experts in 2021, found that over 53 percent expected sustainable development practices to evolve in the industry.
Government Push
So, can this be a voluntary thing or is it important for governments to push for them to actually adopt these practices? I believe the success lies with governments, who are the largest clients for contractual infrastructure projects. They can and must include sustainable practices in projects funded by the government. A large volume of work being executed today is in the realm of different missions such as Housing for All, Smart Cities, Swachh Bharat and Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Once government contracts demand sustainable practices, the shift will automatically happen with the contracting companies.
The McKinsey study on greenhouse gas emissions from the construction industry notes that 30 percent of this comes from raw material processing for buildings and infrastructure and 70 percent from building operations. India needs to tackle both fronts because it is still building much of the infrastructure required for the next 30 years and also has added about one crore houses in the past five years, that will be managed for at least the next 50 years.
Measurable targets
Today these sustainability clauses come in the form of measurable targets. Global technology leader Trimble’s research found that 82 percent of architecture, engineering and construction (AEC) firms have sustainability teams in place and 74 percent are investing in building information modelling to reduce carbon footprints. Basically, what can be measured can be controlled. Technologies such as artificial intelligence, robotics, mixed and augmented reality as well as building information modelling, all help to optimise the use of raw materials and energy. So, the more the companies digitalise, the better would be its ability to lower environmental impact. The first step of digitising historic processes and documentation is already completed in many cases. Now the transformation to use technology for operations is critical to measure, calculate and reduce greenhouse gas emissions.
Today these are not complex calculations that companies need to compute themselves. Embodied carbon calculator tools allow them to optimise building design to reduce carbon emissions. By digitalising, organisations can reduce materials usage and wastage as well as enhance the productivity of people and machinery at work sites. Aiding them in this process is the sophistication of mobile phones which are available at relatively affordable rates to on-site workforces. No longer are estimates made in construction offices based on sporadic information from the sites. The entire system can work digitally across sites and with procurement teams, such that efficient management is possible.
But the drive must come from clients. International Data Corporation’s construction industry statistics of India show that less than five percent of the turnover is invested in research in over 91 percent of companies. With the frenzied pace of construction in India today, there is even less time for construction companies to halt and reset processes for environmental efficiency. They will only do so if the process of winning contracts requires them to adopt these practices to meet stringent requirements from the client companies.
The incentive for governments to include this in their contract documents is that having one captive industry to tame would yield significant green returns to meet global targets. The tools are available and the industry is also leaning towards understanding what needs to be done. A statutory push will propel the industry to meet the global sustainability targets that India is pushing for.
E Jayashree Kurup is a writer-researcher in real estate and Director, Real Estate & Cities, Wordmeister Editorial Services. Views are personal, and do not represent the stand of this publication.