Richard Francis takes a look at how wider changes in ESG are further challenging regulation and conventional business practice, suggesting that bio-based materials and processes represent a risk-reducing, value-adding trajectory for the future
Building performance expectations are changing rapidly, making a bio-based model attractive for futureproofing and anticipating the “issue evolution” of environmental, social and governance (ESG) standards.
However, lingering questions remain: Will the bio-based concept, which has attained significant appeal in other industries, gain mainstream status in the built environment sector? How will we move away from conventional materials and practices? What forces will likely help or hinder a more nature-based approach to buildings?
Broader changes in ESG are propelling bio-based materials and principles. Changes in materials are important, but so too is the milieu in which they emerge. All signs point to buildings following the trajectory of other industries – those who understand and act on this will be advantaged.
Items like “embodied carbon,” “net zero,” “health and wellbeing,” and “biodiversity net gain” are not just important new, individual ideas. Viewed collectively, they represent a clear and identifiable trend towards new ingredients, transparency and performance, health labelling, more natural products and cleaner environments, both indoors and outdoors.
Indeed, one of the main challenges for clients is to see the overall pattern and direction in a period of rapid change – and to know how to respond. Presently, there is a tendency to treat each challenge like net zero or wellness individually without recognising that these items are being redefined and expanded almost continuously – and that they are symbiotic.
As we advance, the cautionary tale is that a piecemeal approach to ESG will likely be insufficient. A reliable model based on sound principles may serve as an effective “covering law” for emerging ESG. This is the promise of a strategy based on the principles of nature.
Broader changes in ESG are propelling bio-based materials and principles.
Drawing on the trajectory of recent changes in ESG, we present the following three factors, all of which point to a mainstreaming of bio-based places:
- There will be an increased focus on building materials and their impacts. Bio-based materials, typically lower in embodied carbon and simultaneously promote healthy interiors, have considerably benefitted from screening a building’s ingredients. We are just beginning the process (embodied carbon analysis for buildings is less than a decade old), and more categories are on the way (pay particular attention to the RICS focus on plastics and toxic materials).
- A performance-based approach to ESG will expand. What is important is not simply what buildings are made of, but what they do (or do not do) for occupants and the environment. Buildings that capture and store renewable energy and water are an advantage, as are those that can purify environments and be recycled and/or provide no waste at end of life.
- Bio is the “next big thing”. In the UK, the most recent requirement to be placed on developers is a “biodiversity net gain” (BNG), which effectively requires projects to improve environmental conditions on site compared to pre-construction activities. We expect BNG to move from outdoors to indoors, partly because indoor biodiversity also satisfies several other ESG requirements.
The rollout and adoption of bio-based materials is likely to be gradual. This represents good news for companies, as there is the opportunity to evaluate adoption strategically. As the bio-based agenda advances, three main questions will help clients prepare:
What can I learn from other industries and products? Other industries have already begun the bio-based journey. Many of the arguments (and solutions) are the same. Not only do other industries influence consumer expectations about buildings, but they also indicate upcoming hurdles and opportunities. An excellent example is plastic, which has dominated other industries for many years and now looks poised to become a more significant issue for the built environment. Predicting the future is never easy, but a good place for clients to begin is to look at what is happening elsewhere and ask: What if that came here?
What does issue expansion look like? A surefire way to anticipate change is to ask what the issue would look like if it expanded. This is what happened to carbon. What would the concept of net zero look like if it was applied to other areas like water, waste, and toxicity? All these issue areas are being discussed in other industries. To some degree, they will be asked of buildings. This does not mean that action is required immediately. Instead, clients should anticipate that ESG concepts will expand within and across issue areas.
What nature-based materials and processes can I begin to implement? Many bio-based materials can be substituted for conventional products with the same (or better) performance at the same costs. These are perhaps an early place to start, as they can immediately contribute to higher ESG credentials. However, there is also an element of looking forward to the ways plant-based principles can influence more systemic requirements of buildings, such as energy and water storage, air purification, nourishment, regeneration, and biodegradability.
If ESG concerns continue to dominate – and the evidence suggests that they will – then thinking about buildings as living systems can be a helpful way to anticipate expectations about future buildings. Like all innovation, the process will take time and permeate at different rates. Still, bio-based products can do three critical things: replace conventional materials, inform operational strategies and communicate sustainability in a way that resonates with a market primed to reward change.
Postscript
Richard Francis, sustainability consultant at Gardiner & Theobald, principal at The Monomoy Company
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