Industry series: construction and engineering - The race is on!

February 21, 2024 | 6 minute read
Bec Sigrist
Director, Industry and Customer Programs
Rogier Roelvink
Insight Program Director
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The construction and engineering industry is under pressure to fast-track decarbonization to meet global susainability targets and adapt to increased regulatory pressure in a commitment to combat climate change. In an industry with a significant environmental footprint today, where construction profit margins are lean, labor shortages are high, and the cost of materials is increasing exponentially, the industry is driven to look towards more circular and sustainable approaches to find a balance between economic growth, environmental care, and social well-being in our race to net-zero.

A snapshot of where this industry stands today:

25%

…of global greenhouse gas (GHG) emissions are created by the construction and engineering industry*

40%

…of global carbon emissions are directly or indirectly contributed by the built environment*

11%

…of global emissions are attributed to embodied carbon from the built environment**

 

Using technology, the construction and engineering industry can not only meet the demands of today but advance towards sustainable outcomes for our planet and future generations through the following:

 

Leveraging technology to achieve sustainability in construction. Keeping track of a multitude of factors affecting project outcomes across several layers in an organization, irrespective whether you are an owner or delivery organization, requires better use of technology to provide the relevant insights from data and information. Technology facilitates informed decision making and insightful environment, social, and governance (ESG) reporting. Technology enables the industry to accelerate performance to counter market consolidation, talent shortages, economic pressures, project complexity, size, and risk, and meet collective decarbonization targets. Take a look at how supply chain traceability and carbon emissions tracking is made possible through our Oracle Primavera Unifier integration with Circulor, and see the benefits Oracle Construction and Engineering customers are realizing today.

 

Embed sustainability outcomes into project DNA. The next leap forward for the Construction and Engineering industry will be to demonstrably meet sustainability targets per project across Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions. This demands an intelligent ecosystem that unlocks valuable data and metrics to drive deeper analytics, process automation, and leverages Artificial Intelligence (AI) to empower decisions. When the entire project supply chain captures data on inter-connected applications that are hosted on secure networks with an open common data environment (CDE), ESG reporting capabilities and insights will be ingrained into project DNA.

 

Carbon is the currency of tomorrow. Limiting the upfront, embodied, and operational carbon of building and assets is fundamental to our collective success. Making informed decisions at every project lifecycle stage based on robust reliable data and information allows for setting and subsequently meeting carbon targets for every project. Technology enables capturing and measuring carbon in a carbon budget like a monetary budget. GHG contributions can be measured and evaluated to determine the optimal balance between profitability and environmental impact.

 

$9.2 trillion

…in infrastructure spending is needed annually until 2050 to meet net-zero targets. Three-quarters of this will go toward new construction – offering opportunities to fight climate change by reducing embodied carbon emissions***

 

The construction and engineering industry can build infrastructure to be more sustainable, even when standards, regulations, and technologies are uncertain and largely untested at scale at best, or a ‘known unknown’ at worst. Time to value is critical in meeting global, national, and local sustainability targets. Our collective speed in getting new infrastructure up and running, and economically viable is critical to success.

Oracle Construction and Engineering transform the world by helping organizations plan, build, and operate critical assets with fast time to value. Our solutions equip organizations in constructing a sustainable future through insights into construction and operations that promote collaboration and increase transparency into complex supply chains to present a deeper understanding of the environmental impact of decisions. Our connected platform combines industry-trusted applications with a common data environment and a highly responsive ecosystem of partners enabling users to expedite predictive analytics that help deliver resilient assets on time and within budget and reduce carbon emissions and waste.

 

With no time to lose, here’s how Oracle Construction and Engineering technology supports sustainable infrastructure planning and creation:

Reduce cost and delivery times through technology enhancements such as Artificial Intelligence (AI) and Machine Learning (ML). Insights and what-if modelling enable better planning where uncertainty exists, allows portfolio optimization, facilitates prioritization of projects, and enables implementing alternative plans if required. Technologically driven insights and predictive analysis empower users to choose the right project at the right time. Deploying resources where needed based on supply and demand patterns maximizes efficient use of material, equipment, and personnel, therefore eliminating costly re-work and waste by placing the right coordination tool in the hands of the right stakeholder to achieve better outcomes.

 

Minimize environmental impact by investing in technological innovations through integrated ecosystems, connected platforms and common data environments. Project-wide collaboration helps teams coordinate and plan more effectively, drives faster processes and cycle times, and leads to improved efficiency, quality outcomes, and faster project completion.

 

 

A connected platform enables autonomous equipment, robotics, drone surveillance, augmented reality, AI, the internet of things (IoT), ML and other developing technologies that can all contribute to overcoming labor shortage challenges. Technology advances and increased productivity offer more efficient and effective portfolio and project planning, ensuring environmental factors are accounted for along with collaboration, project controls and workflow automation.

 

 

Watch our On-Demand Webinar, Sustainability in construction: Saving the planet one project at a time, to learn how technology can help you reach the sustainability goals of your projects and programs. You’ll hear how organizations are successfully managing their construction projects to meet sustainability requirements and deliver on time and within budget.

Find out how our technologies transform the world’s infrastructure in our collective global race to net-zero. 

 

 

 

*Source: McKinsey

**Source: World Green Business Council

***Source: McKinsey

Bec Sigrist

Director, Industry and Customer Programs

Rogier Roelvink

Insight Program Director


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