Ten Suggested Sustainability Issues in the Construction Industry in Singapore

8/13/2019 Ten Suggested Sustainability Issues in the Construction Industry in Singapore

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Please cite as Tan, Kaia M D (2013): Ten suggested sustainability issues relevant to the

construction industry in Singapore

Excerpt from MEM study report Towards broader implementation of

corporate sustainability and sustainability reporting in the

construction industry in Singaporeby Kaia Margit Davis Tan

National University of Singapore, 9 December 2013

Ten suggested sustainability issues relevant to the construction industry in

Singapore

A good starting point for companies that wish to address sustainability impacts

of their business activities is to communicate with stakeholders and identify

what is material to the company. Different companies are likely to address

overlapping issues, such as greenhouse gas emissions, human rights, decent

labour practices and anti-corruption, and in addition, establish distinct focus

areas. Here, we suggest ten key sustainability issues that are relevant for the

construction industry in Singapore. These are areas where the industry has

social and environmental impacts and require attention for potential

improvements. The ten sustainability issues are based on literature review, track

record of the construction industry in Singapore, aspiration of construction

company leaders in the industry, focus areas of construction companies leading

in sustainability, Singapore laws, regulations, codes and guidelines, and

internationally recognised frameworks such as UN Global Compact and GRI

indicators for sustainability reporting in the construction and real-estate sector.

Each sustainability issue is important in its own right and they have therefore

not been ranked.

Safety and Health

Focus on workplace safety and health is long overdue considering Singapores

poor track record in this area, however, promising results have shown a

reduction in fatality rates from 4.9 per 100,000 workers in 2004 to 2.2 per

100,000 workers in 20101. The target should be zero accidents, as has been

pledged by several companies in the construction industry. The government is

1Parliamentary Debates, 6 March 2008


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increasing its attention on safety and health at workplaces in Singapore and has

recently amended the Workplace Safety and Health Act (WHSA) in 2011 to cover

all workplaces, an extension from the first version which only applied to high-

risk industries such as factories, construction and shipyards (Ang 2012). Theobjective of the Workplace Safety and Health regulatory framework is to

eliminate or minimise risks of accidents at the source. Management and

directors of companies are held accountable for the safety and health of their

workers at the workplace and poor safety management and performance is

discouraged with higher penalties (Ang 2012).

There are several incentives for companies in the construction industry to

implement effective management systems and uphold impeccable workplace

safety and health records. Accidents have a profoundly negative effect on

companies. Maintaining healthy workers and a safe working environment can

improve the productivity, enhance a companys reputation and provide stronger

position to win contracts and meet clients demands. The company is also likely

to have a lower risk of legal liabilities and paying out compensations, and may

save cost from reduced insurance premiums and less disruptions of work.

However, there are challenges in implementing workplace safety and health

management systems. Projects often have tight schedules to finish on time. Low

educational levels, lack of training or low compliance from workers can also pose

problems.

The first step to develop a safety culture is to report and investigate accidents

and incidents. Furthermore, communication between workers and managers is a

prerequisite when addressing safety and health problems, together with mutual

understanding, trust and openness (Clarke 1999). The construction industry is

characterised by its distinct projects that rely on contractors and sub-

contractors. Thus, developers, architects, construction companies and engineers

should put in place selection criteria which ensure that contractors and sub-

contractors meet the requirements of their workplace safety and health policies.


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Wellness of workers

Workplace wellness programs can improve employees physical and mental

health, and reduce the number of employees that smoke, have high blood

pressure or who are physically inactive. There are significant gains frominvesting in employees wellness and work-life harmony, which results in a

healthier and more productive workforce and savings on health-care costs,

reduced absenteeism cost. Moreover, employees that take part in wellness

programs are less likely to leave the company (Berry, Mirabito et al. 2010).

Creating a culture of health in a company takes time and requires persistent and

convincing leadership, as with other sustainability initiatives.

The Singapore Health Promotion Board offers grants, programmes, bestpractices awards and workplace health packages companies and health

facilitators. Wellness programs encompass programs targeted at healthier

employees, e.g. exercise programs, stress management and healthy eating habits,

programs targeted at high-risk employees, e.g. hypertension screening and

smoking cessation programs, and programs targeted at individuals with existing

health problems such as diabetes or depression. The latter programs promotes

treatment compliance and special needs (Ang 2012). In the construction

industry, workplace wellness programs should include construction workers

where wellness programs accommodate their specific needs, in particular

physical and mental well-being, adequate rest, appropriate housing and healthy

eating.

Energy and resource conservation, Waste reduction and recycling

The Earths natural capital is being depleted and there is evidence of water and

energy scarcity. Current energy and resource use is contributing to

environmental degradation and climate change. The cost of fuel is rising due to

strong global demand, limited capacity in oil production and political instability2.

The construction industry depends on landfills for the vast amounts of waste

that is generated. It is therefore important for land-scarce Singapore to find

solutions to this problem.

2http://www.caltex.com/sg/resources/determining-fuel-prices/


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There are several ways in which construction companies can participate in

resource conservation and waste management, such as pursue sustainable

procurement, selecting wood products from sustainably managed forests and

other sources than tropical forests, use metal forms instead of timber formwork,adopt sustainable construction, perform Environmental Impact Analyses and

Life Cycle Analyses, increase recycling and use pre-fabricated components.

Existing government incentives offer funding for energy efficiency assessments,

rebates of up to 100% of the cost of energy efficient technologies, training grants

and cash incentives under the Green Mark Incentive Scheme3. Companies can

save cost by becoming more energy efficient and reduce waste to landfill. For

example, the first 40% of energy savings are often easy and cheap to implement

(Aguiriano 2012). However, companies may face challenges due to a lack or

constraints of renewable energy technologies, slow payback time for new

technology investments, high initial capital cost and long lead times. Also, the

availability of high quality, time-tested environmentally friendly materials may

be limited. This should not deter companies from exploring opportunities in

energy, resource conservation and waste management, seeing that the long-term

benefits are likely to outweigh the challenges and risks.

Sustainable procurement

The objective of sustainable procurement is for companies to buy

environmentally friendly goods and services from environmentally and socially

responsible suppliers. Leading companies are experiencing that their company is

only as safe, ethical and green as its supply chain (Skanska 2010). In the

construction industry, much of a companys revenue flows through the supply

chain and it also plays a key role in selection of materials. Therefore, supply

chain management is of strategic importance.

The first step is to build databases of what constitute environmentally friendly

goods and services as well as environmentally and socially responsible suppliers,

then determine who meets those criteria in the companys supply base.

However, there is a compromise between having a procurement policy that

3http://www.e2singapore.gov.sg/incentives.html


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covers all goods and services in every country from small to large suppliers, and

the need to give buyers and managers the tools to understand and meet the

procurement policy. Thus, there is a need to train buyers and managers so they

can fully understand the companys sustainable procurement policy, and toprovide the necessary resources so buyers and managers can engage

stakeholders, such as NGOs, which may be of assistance. Sustainable suppliers

can be identified using surveys, although it is important to note that suppliers

may have to handle many such surveys from other companies and that they

present self reporting data, which need backing up from publicly available

information. Ideally, important suppliers who dont meet the criteria should be

presented with both incentives and penalties. The company should also consider

alternative suppliers, and how others in the industry are performing.

Sustainable procurement may be challenging for companies that are in the initial

stages of adopting corporate sustainability and sustainability reporting, since

their focus often is on activities within the boundaries of the company. However,

the risks present in the supply chain should not be neglected in the successive

process.

Pollution prevention

The construction industry contributes to noise pollution, air pollution and water

pollution. Noise pollution stems from piling machines, heavy vehicles and

concrete pumps, whereas the most common air pollution to cause annoyance is

dust. However, the construction industry is also responsible for greenhouse gas

emissions and water pollution, mostly from silt discharges, cement slurry and oil

based products. Hydraulic oil, which is used in majority of tracked earthmoving

machinery, is a particularly aggressive pollutant when discharged near

watercourses (Morledge and Jackson 2001). An environmentally friendly

alternative fuel is biodegradable hydraulic oil, although it is more expensive.

Contractors can also explore on-site green techniquesto reduce air, water and

noise pollution. These techniques provide simple and cheap solutions to

pollution problems in construction that result from the creativity of workers on

site and do not require sophisticated technology (Teo 1999). Developers and


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construction companies should shift focus from end-of-pipe pollution clean up to

prevention of pollution at the source. By minimising risks of pollution,

companies can avoid accidents, fines and legal liabilities, which could damage

their reputation.

Biodiversity conservation, Heritage conservation

Singapore is located in the heart of the Indo-Malayan rainforest, which is one of

the three last remaining rainforests in the world, and have a rich biodiversity

despite its small size. There are more than 2000 native, vascular plant species,

57 mammal species and close to 400 bird species4. Majority of the original

natural habitats have disappeared due to the development of Singapore into a

densely populated city. However, the remaining natural habitats are important

locations for plant species, wildlife and migratory birds along the major

migratory route, the East Asian Flyway. Construction projects for housing,

commercial buildings or infrastructure may have destructive impacts on these

natural habitats and biodiversity. The government has therefore legally

protected some of the fragile and vital indigenous ecosystems, such as the

lowland dipterocarp forest in Bukit Timah Nature Reserve, the Central

Catchment Nature Reserve and the ASEAN Heritage Park, Sungei Buloh Wetland

Reserve (NParks 2009). Along with natural heritage, Singapore also has rich

architectural heritage and important historical landmarks. Its distinctive

shophouses, black and white colonial bungalows, temples, mosques, national

monuments, rural villages (kampung) such as in Pulau Ubin and even Heritage

Trees are part of Singapores heritage. The public is increasingly engaged in

protecting these natural and cultural heritage sites, as illustrated by the recent

example of Bukit Brown Cemetery. In a fast changing and developing country

such as Singapore, it is important to integrate preservation of national heritage

sites into the urban planning processes. Developers and construction companies

can do their part to protect natural habitats and heritage sites by implementing

environmental impact assessments, addressing ecological features on sites,

4http://www.nparks.gov.sg/cms/index.php?option=com_content&view=article&id=160&Itemid=

129


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protect animal and plant species and other safeguarding procedures.

Consultants, ecologists, NGOs and other relevant stakeholders should be engaged

throughout the process. Synergetic preservation efforts by the public and private

are needed to ensure that future generation can enjoy the rich biodiversity andhistorical heritage of Singapore.

Stakeholder engagement

An organisation has the potential through corporate sustainability to give

stakeholders the opportunity to make a powerful difference in the world or in

their communities. The stakeholders roles are in the connection between a

companys commitments, the companys impacts and the people within that

company. Stakeholder engagement is a systematic approach of how the company

connects to stakeholders and attain a mutual understanding. Factors such as

what the value systems of the company are, what kind of clients the company is

catering to and what the companys rivals are doing should be included into the

design of the corporate sustainability initiatives. Here, stakeholder engagement

may highlight gaps and impacts that the company needs to advance

environmental, social and economic progress and also provide the tools to solve

these issues. Stakeholder engagement creates a platform for sharing of best

practices. The first level of stakeholder engagement is centred around the

sustainability performance of the company and how the company reports their

performance, then the stakeholder engagement moves up to a level where trust

is built between the company and the stakeholders. Finally, partnerships are

formed between stakeholders and the company that open up new opportunities.

Moreover, engagement can help companies understand why some stakeholders

are not talking to each other, and what can be done to encourage dialogue. This

is particularly important in the planning stages of new projects with impacts on

local communities. Thus, the benefit of stakeholder engagement is not solely for

the company, but also for clients, communities and the causes supported by the

company.


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Community Outreach

Construction and real-estate companies have impacts on local communities, both

during and after projects, and can benefit from a continuous dialogue with the

people who are affected by their projects. In countries where they operate,companies can support the community by employing and educating locals,

without discriminating against people with disabilities, elderly or ex-offenders.

Employees may get a sense of pride that their company is giving back to the

society and be encouraged to engage in supporting the less fortunate, charities or

local artists. Companies that pursue corporate social responsibility are attractive

for candidates that want to be part of an organisation that connects them with

the community and delivers solutions. Thus, the work environment relates to theperson as a whole and not just to their professional ambitions and skills.

Limitations and further research

This study is a comprehensive and analytical survey of literature, thus additional

research with quantitative data and surveys would further expand and support

our findings. There is limited data on the financial cost of internalising

externalities of business activities and quantifying gains from corporate

sustainability still poses a challenge.

The construction industry consists of a wide range of smaller to larger

multinational companies with different business undertakings, therefore more

research should be done that target various groups of similar companies to

dissect what is relevant and applicable to them. Further research would benefit

from surveys of current trends in awareness and attitudes towards corporate

sustainability, sustainability reporting and the incentives and challenges in

implementing these business approaches. There is also a need to continuously

update technological progress in sustainable construction and to quantify the

environmental impacts of the built environment with life cycle analyses and

other tools.


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References

Aguiriano, J. G. (2012). Sustainability in Practice, DuPont Sustainability Solutions.

Singapore, 14th Asia Pacific Confederation of Chemical Engineering Congress,.

Ang, S. C. (2012). Exploring the role of organisational wellness inbuilding a safetyculture in workplaces. NUS Business School. NUS, SIngapore, National University

of Singapore. Bachelor of Business Administration (Honours).

Berry, L. L., A. M. Mirabito, et al. (2010). "Whats the Hard Return on EmployeeWellness Programs?" Harvard business review 88(12): 104-112.

Clarke, S. (1999). "Perceptions of organizational safety: implications for the

development of safety culture." Journal of Organizational Behavior 20(2): 185-

198.

Morledge, R. and F. Jackson (2001). "Reducing environmental pollution causedby construction plant." Environmental Management and Health 12(2): 191-206.

NParks (2009). Conserving our Biodiversity: Singapore's National Biodiversity

Strategy and Action Plan. N. P. Board. Singapore, National Biodiversity Centre.

Skanska (2010). Skanska Annual Report 2010: Sustainable Development.

Sweden.

Teo, L. L. A. (1999). Green techniques on site: a step towards sustainable

construction. Building. Singapore, National University of Singapore. B.Sc.

(Building).

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Ten Suggested Sustainability Issues in the Construction Industry in Singapore