Green Building Materials: Constructing a Sustainable Future
Contents
Introduction
Construction can be cleaned up
Market forces
Builders, innovators seeking sustainable materials
Investment opportunities
Rising demand
Segments
Bamboo, cork, hempcrete
Market movers
Leaders & fast followers
Investors
VC / PE / Funds
Final Thoughts
The search for durable green materials continues
Bringing Circularity to Construction
Construction, among the dirtiest of industries, can be cleaned up
The sounds of saws and hammers are again reverberating at construction sites around the world, after the pandemic and subsequent economic slowdown had silenced many of them.
Good for workers and economies, and with questionable benefits to the environment since construction contributes to global warming like few other industries.
Both construction and building operations account for 37% of global energy-related CO2 emissions, according to the U.N.-supported Global Alliance for Buildings and Construction. That total dropped 10% in 2020, largely due to government lockdowns and other restrictions associated with COVID-19.
With building activity resuming, the industry is further than ever from helping achieve the Paris Agreement goal “to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.” In order to reach decarbonization by 2050, the construction industry must cut 60% of energy-related emissions by 2030, the U.N. says.
Construction consumes up to 40% of all raw materials extracted in the world and buildings consume roughly 25% of the global water supply. Hitting the Paris Agreement goals will require net zero buildings to be the norm in the future. There’s also a measure called embodied energy, which accounts for the energy required to make the materials used in construction. And despite all of the resources going into making materials, less than a third of those materials are recycled or reused.
To help mitigate this waste, architects and construction companies are increasingly incorporating “green” practices, including the replacement of fuel-based materials with natural, recycled materials.
As the construction industry reckons with the need for sustainable building practices, material alternatives and innovative products are being sought and developed. The pressure cut greenhouse gases opens the door to investors and new opportunities to utilize renewable materials and introduce them to the construction supply chain.
“Investment in the energy efficiency of buildings continues to climb. Looking ahead, the challenges to reaching a net zero, energy-efficient and resilient buildings and construction sector are considerable.”
Global Alliance for Buildings and Construction
Market Trends: Rising Demand Globally
Market Forces
There is an increase in demand for green buildings and natural or recycled building materials:
In 2015, the global green building materials market size was valued at $158 billion, and was projected to increase to $245 billion by 2022.
Outpacing earlier growth projections, the global green building materials market is now anticipated to reach $432.5 billion at a compound annual growth rate (CAGR) of 11.7% between 2019 and 2024.
Markets vary by geographic region:
North America is the largest market for green building materials at present.
Portugal is the world’s largest cork producer, with the global building sector absorbing 22% of cork production for such materials as cubes and blocks.
Source: Global Alliance for Buildings and Construction
Investment Opportunities
Green buildings are drawing attention from investors thanks to their cost and energy efficiencies, significantly reduced emissions, and associated long-term building sustainability. By harnessing the potential of our planet’s renewable natural material resources, we can build better, environmentally friendly buildings that are healthier for the people who work and live inside them.
Green building and insulation materials offer investors the following benefits:
Higher returns: reduced vacancies and greater cash flows
Positive environmental impact: consume less energy by utilizing green materials and reducing landfill waste
Lower expenses: reduced monthly utilities costs,
Health benefits: improved indoor air quality
There is an increase in demand for green buildings and natural or recycled building materials:
In 2015, the global green building materials market size was valued at $158 billion, and was projected to increase to $245 billion by 2022.
Outpacing earlier growth projections, the global green building materials market is now anticipated to reach $432.5 billion at a compound annual growth rate (CAGR) of 11.7% between 2019 and 2024.
Markets vary by geographic region:
North America is the largest market for green building materials at present.
Portugal is the world’s largest cork producer, with the global building sector absorbing 22% of cork production for such materials as cubes and blocks.
Market Segments: Cork, Hempcrete, Traditional
Home made from hempcrete
Natural Building Materials
One popular green practice currently being implemented in the building sector is to substitute conventional building products such as steel and concrete with renewable, natural materials that are grown and harvested — rather than mined and reformed — and whose use results in lower carbon emissions, better energy efficiencies, long-term structural sustainability, and reduced water and air pollution.
Timber
Mechanical properties: stiffness, strength, hardness, and resilience
Environmental advantages: renewable, with a low embodied energy and carbon impact; its carbon emissions are neutral, or negative if recycled and reused instead of incinerated at its end of life; entails prior carbon capture and sequestration for the whole life of a building, and longer when reused
Scientific studies show wooden structures require less energy and emit less CO2 during their life compared with buildings constructed from other types of materials
Cork
Extracted from the cork oak tree, which is found in the Mediterranean region
Mechanical properties: heat resistance, soundproofing, electrical insulation, lightweight, resistance to rot, and vibration absorbent
Environmental advantages: renewable, 100% recyclable, non-toxic, sequesters carbon, and has a closed life cycle
Bamboo
Mechanical properties: tensile strength, and has many uses in building and construction.
Environmental advantages: particularly sustainable due to its fast growth and being renewable
Bamboo
With its tensile strength, bamboo has many uses in building and construction. Environmental advantages include sustainability due to its fast growth and being renewable.
Hempcrete
A lightweight material made of hemp, lime-based binder, and water; it is popular in Europe
Mechanical properties: acts as insulator and moisture regulator; lacks the brittleness of concrete, and thus does not need expansion joints
Environmental advantages: renewable; light weight reduces energy used for transport; negative carbon footprint
Recycled Building Materials
Another way to transition from fuel-based building materials is by recycling and reusing non-renewable materials already extracted, such as cement and steel. By cutting out the initial steps of raw extraction and manufacturing, which significantly contribute to GHG emissions, the embodied energy of the recycled product can be reduced and made more sustainable. The main benefits of recycling are energy savings, less harmful emissions, and less waste sent to landfills.
As the reuse of building materials affects a complex system, each material should be assessed separately. The following provides the general impacts and benefits of some of the main materials that can be recycled:
Precast Concrete
Virgin concrete contributes significantly to GHG emissions. Precast concrete slabs are preferable to traditional poured concrete because they take less energy to produce and assemble.
High density and low value cause transport energy to represent a high proportion of its total embodied energy, thus making the location of recycling plants in relation to buildings crucial in determining its recycling viability
Brick
Reuse mainly depends on the grade of mortar used for laying
Utilizing materials such as hollow concrete bricks instead of those with a high-embodied energy such as reinforced concrete could save 20% of the cumulative energy over a 50-year life cycle
Steel
Although production of virgin steel uses a lot of energy, reuse of steel confers savings of more than 50% in embodied energy
Aluminum
High-value, low-density material; embodied energy of recycled product less than one-tenth of that of the virgin material; transportation energy is also considerably lower
Innovative Building Materials
The use of waste materials is a way to integrate sustainable and innovative approaches to the construction industry.
Microorganisms
The process of using microorganisms mimics a naturally occurring material called “biological cement,” or “biocement,” much like the process that occurs when coral is formed. The biocement that is produced is environmentally advantageous compared with traditional cement, as it can be made lighter, is formed in ambient temperatures without the use of fossil fuels, and contains sequestered carbon dioxide.
Fly Ash (AshCrete)
The use of waste materials such as fly ashes and iron slags as substitutes for cement in concrete production increases concrete durability. By using fly ash, a byproduct of burning coal, 97% of traditional components in concrete can be replaced with recycled materials.
Recycled plastic
Researchers are creating concrete that includes recycled plastics and trash. This reduces not only GHGs but also weight, and landfills.
Ferrock
Ferrock is a new building material using recycled waste materials such as steel dust. It creates a concrete-like building that is stronger than one constructed from concrete and does not need repairs or replacement. This material is also carbon neutral, as it captures and sequesters CO2.
Mushroom brick
Mycelium brick is formed from organic waste and the mycelium of fungus. They are strong and resistant to water, mold, and fire. They are also easily recycled, absorb CO2, and reduce fossil fuel usage. Source: Happho.com
Mycelium
A particularly innovative material is mycelium brick, which is formed from organic waste and the mycelium of fungus. In terms of its mechanical properties, these bricks are strong and resistant to water, mold, and fire. They are also easily recycled, absorb CO2, and reduce fossil fuel usage.
Green Building Material's Impact
Natural and recycled materials’ impact on climate include:
Promoting conservation of non-renewable resources
Reducing environmental impact associated with processing, transportation, disposal, and recycling of building materials
Addressing environment challenges including climate change, natural resource depletion, loss of biodiversity, and pollution in water and air
Reducing GHG emissions by enhancing the energy efficiency of buildings and communities and use of natural and recycled materials
Supply chains for timber promoting responsible forest management and also encouraging long-term afforestation and carbon sequestration
In addition to the environmental advantages, natural and recycled materials offer:
Improved health and well-being of people who live and work in the buildings, as traditional building materials have more toxic chemicals than green materials
Health benefits including improved air quality and work productivity
Job creation, as the increased use of green materials is expected to create more jobs
Market Movers: Current and Future Heavy Hitters
Market leaders:
Alumasc Group Plc (UK): Supplier of building and engineering products, with a specialization in sustainable building products designed to manage energy and water use. Offers a variety of green building solutions, including green roofing, solar shading, and sustainable material drainage systems
BASF SE (Germany): Largest chemical producer in the world and creator of Cavipor, a non-combustible mineral-based insulation material that can be processed quickly and easily
Owens Corning (U.S.) Purchases locally sourced recycled glass from Ripple Glass to manufacture fiberglass insulation in its local manufacturing plant; in joint effort with Ripple Glass, is helping to greatly reduce the amount of glass that would have been deposited in local Kansas City landfills.
LG Hausys Ltd (US/Korea) Makes “Viatera” quartz countertop surface, which are certified by green building standards.
Future leaders
Biomason (U.S.): Startup making cement materials using microorganisms. The final product is more environmentally advantageous than traditional cement.
Bark House (U.S.): Makes wall coverings from reclaimed Appalachian wood waste for interior and exterior design.
Kirei (U.S.): Uses reclaimed and renewable agricultural fibers to create decorative materials for interior design.
IceStone (U.S.): Produces durable surfaces made from 100% recycled glass and cement. Cuts, installs, and maintains surfaces just like mined stone and can be used for countertops and walls.
EcoFrame: Combines cutting-edge technology with sustainable building materials for framing.
Engineers load-bearing structures exclusively out of its in-house manufactured cold-formed steel studs that are100% recyclable and made with up to 40% recycled material, reducing/eliminating the need for expensive red iron or similar load-bearing materials while providing a sustainable alternative to wood construction
ShreddedTire (US): Company’s Echo-System turns end-of-life tire waste into building materials through patented process that mixes shredded tires with additional ingredients.
Echo-System can function as a replacement for traditional roofing materials and has a recycled content of 87%-to-93%.
Shredded Tire patio blocks
“It is nice to know that, on average, every two square feet of Echo Flow Hardscape will displace one tire from going to a landfill or being burned as fuel at a cement plant.”
Venture Capital/PE and Other Fund Investors
Global VC fund focusing primarily on the real estate industry and “built world” technology, or scaling human-made environments
In February 2020, firm announced its $500 million fund would be pivoting investment interests toward sustainable solutions within the real estate sector
Invests in transformative technology in the real estate and construction sectors
Portfolio company Honest Buildings harnesses a digital platform to manage and improve efficiency of commercial buildings
Boston-based investment fund focusing on financing companies in the energy and cleantech industries
Portfolio company, Aspen Aerogels, designs, develops, and manufactures energy infrastructure and building materials that increase efficiency
Invests in early stage technology companies within emerging markets
In 2008, invested $15 million in sustainable concrete company Hycrete
VC arm of Caterpillar distributor HOLT CAT, whose industries of focus include: manufacturing, rental, and distribution businesses
Portfolio includes number of different companies that improve the efficiency of construction work, such as Streamline, whose technology expedites customer access to utilities and industrial markets
Final Thoughts
The search for reliable and durable materials continues as producers seek balance between renewability and profitability. However, overexploitation and overconsumption should still be an important factor to consider while seeking alternative resources. The correct management of extraction practices should be regulated first and foremost in order to truly transition to a more sustainable future.
As well, we must consider the impacts of urbanization expansion and floor occupation. Land usage is another concerning topic that needs to be addressed and should be of impact to the construction industry. New building designs and alternative living arrangements can allow for a more sustainable industry that keeps in mind the wellbeing of protected or green areas.
Urbanization is tied to development because of a number of reasons, but to turn the construction industry into an environmentally friendly practice, stakeholders should consider LCAs and account for the correct use and reuse of all materials as well as the impact each stage of the supply chain has.
Innovative construction and material sourcing present an interesting glimpse to what our future world might look like, conscious, green and healthy.