Sustainability in construction: How to build a greener and smarter business

Published Thursday 27 November 2025

Table of contents

• What is sustainable construction?
• What is meant by sustainable construction?
• Why is sustainable construction important?
• How can construction be more sustainable?
• Sustainable construction examples
• Become a more sustainable construction business
• FAQs on sustainable construction

Key takeaways

• Implement the three pillars of sustainable construction by balancing environmental impact reduction, economic viability, and social benefits to create buildings that protect the environment while delivering financial returns and improving community wellbeing.

• Prioritise sustainable materials like cross-laminated timber, recycled materials, and locally sourced options to reduce your project's carbon footprint by up to 40% while supporting the local economy and cutting transportation costs.

• Apply energy-efficient design methods including maximised insulation, natural ventilation, and strategic use of natural light to reduce operating costs and achieve positive returns within 3-5 years through lower energy bills and higher property values.

• Utilise construction accounting software to track the financial impact of sustainable choices, monitor cost savings, and demonstrate clear return on investment to clients while accessing available UK tax incentives for energy-efficient investments.

What is sustainable construction?

Sustainable construction is the practice of designing, building, and operating structures in ways that minimise environmental impact while maintaining economic viability.

The construction industry accounts for 39% of gross annual carbon emissions, making sustainable practices essential for your business's future success.

Whether you want to make your construction projects more sustainable or run a sustainable construction business, this guide will show you how to make real changes.

What is meant by sustainable construction?

Sustainable construction means designing, constructing, and operating buildings in ways that protect the environment while delivering financial and social benefits.

Key sustainable practices include:

• Energy efficiency: Reducing power consumption through smart design
• Material selection: Using renewable, non-toxic, and locally sourced materials
• Waste reduction: Minimising construction and operational waste
• Resource conservation: Protecting natural resources for future use

This approach balances environmental responsibility with business profitability and community wellbeing.

What are the three pillars of sustainability in construction?

Sustainable construction is more than using renewable energy or improving energy efficiency. You can use the three pillars of sustainability in construction to guide your approach:

• Environmental sustainability: Reduce the impact of buildings on the environment. The built environment is responsible for 25% of the total UK carbon footprint. Use energy-efficient design and materials that generate less carbon dioxide.
• Economic sustainability: Keep projects within budget, make a profit, and deliver financial benefits for the community and occupants. Use clear financial data to make smart decisions.
• Social sustainability: Create spaces that meet community needs and improve quality of life. Promote wellbeing for everyone who uses the building.

Is sustainable construction more expensive?

Sustainable construction usually pays for itself through lower running costs and higher property values. Research shows that Building Research Establishment Environmental Assessment Method (BREEAM) certification can increase office rental prices.

Financial benefits include:

• Lower energy and water bills
• Extended building lifespan through durable materials
• Higher property values and rental rates
• Reduced maintenance costs

You can get UK tax incentives through environmental taxes, reliefs, and schemes if your business:

• operates energy-intensive processes
• uses minimal energy as a small business
• invests in energy-efficient technology

You can learn more about such financial incentives here.

Construction accounting software helps you track costs and gives you the evidence you need for tax relief or exemptions. Using Procore with Xero accounting software helps you manage expenses and access the information you need quickly.

Why is sustainable construction important?

Sustainable construction is important because it reduces environmental impact, cuts operating costs, and positions your business for future regulations and market demands.

The UK's net zero target by 2050 makes sustainable practices increasingly essential. Key benefits include:

Environmental protection

Biodiversity is essential to human life on earth. By choosing sustainable construction practices, you can limit the negative impact of buildings on the environment and contribute to environmental preservation. For example, opt for solar panels so occupants don't have to rely on fossil fuels for energy, or choose recycled materials instead of new ones.

Resource conservation

Natural resources are often depleted by traditional construction methods. Choosing renewable, non-toxic, and durable materials can help with resource conservation, especially since traditional materials like concrete account for almost a tenth of worldwide industrial water use. Sheep wool insulation is a great example of a natural material that can be regenerated. Take your resource conservation efforts one step further by investing in more efficient waste management and recycling.

Cost savings

Sustainable construction projects can save you money over time. You can cut costs through smart building design and by choosing the right materials. Well-insulated buildings keep heat in, so you use less energy to stay warm. Skylights and sun-facing windows bring in natural light and heat, so you use less heating.

Improved indoor air quality

Good air quality is important for your health. You can improve indoor air quality by using non-toxic materials and natural ventilation.

Community development

Buildings play a big part in community wellbeing. Sustainable construction helps create thriving communities by improving walkability, adding green spaces, and supporting rooftop gardens.

Adaptability to climate change

Sustainable design and construction can help buildings withstand extreme weather events and natural disasters. Often, climate change construction makes use of the natural environment. For example, you can protect buildings against floods by surrounding them with trees and vegetation, as impervious surfaces can cause five times the amount of runoff generated by a typical woodland.

Supporting economic development

Construction projects of all sizes create local jobs. When you use sustainable construction, you support the local economy and nearby businesses by sourcing materials locally.

How can construction be more sustainable?

Construction becomes more sustainable through strategic material choices and efficient building methods that reduce environmental impact throughout a building's lifecycle.

You can make construction more sustainable in two main ways:

Using sustainable construction materials

Sustainable construction materials help you lower your environmental impact and benefit people who use your buildings. Traditional materials like concrete create nearly 8% of global carbon dioxide emissions each year.

Better material choices include:

• Cross-laminated timber (CLT): Carbon-negative material that removes more CO2 than it produces
• Recycled materials: Reduce waste and limit raw resource consumption
• Renewable materials: Can be regrown and regenerated sustainably
• Low-embodied energy materials: Require minimal energy to produce (brick, timber)
• Low-VOC materials: Contain fewer harmful chemicals, protecting air quality
• Bio-based materials: Natural materials like bamboo that replenish quickly
• Non-toxic materials: Emit minimal toxins, safer for occupants and environment
• Local materials: Reduce transportation fuel and support local economy
• Durable materials: Last longer, reducing replacement frequency

Practising sustainable construction methods

Sustainable construction methods maximise the environmental benefits of green materials through efficient design and building practices.

Key methods include:

• Energy-efficient design: Maximise insulation, ventilation, and airtightness for reduced energy consumption
• Waste reduction: Recycle and repurpose materials to reduce 'upfront carbon,' which will be responsible for half of the entire carbon footprint of new construction between now and 2050.
• Healthy building design: Integrate green spaces, natural light, and ventilation for occupant wellbeing
• Walkability and green access: Create buildings that promote community health and environmental connection
• Lifecycle planning: Select future-ready materials and designs (heat pumps, solar panels) to align with industry goals for new buildings and renovations to have at least 40% less embodied carbon by 2030.

Sustainable construction examples

There are plenty of organisations, guidelines, and stand-out sustainable buildings you can take inspiration from. Here are a handful of examples:

1. Passivhaus standard
2. BREEAM certification
3. Living Roofs
4. The Green Infrastructure Framework

Become a more sustainable construction business

In this guide we've explored:

• The three pillars of sustainable construction and how you can meet all of them in your construction business.
• The benefits of sustainable construction materials and practices, for you, your clients, and the wider community.
• Examples of sustainable construction initiatives you can seek inspiration from.

Making sustainable construction profitable means you need clear financial visibility to track costs, measure savings, and show return on investment (ROI) to your clients.

Xero accounting software for construction businesses helps you track the financial impact of your sustainable choices. You can monitor cash flow, inventory costs, and project profitability, so you can make confident decisions that benefit your clients and your business.

Try Xero accounting software for construction businesses today.

For more tips, explore guides to managing your construction business.

FAQs on sustainable construction

Common questions about implementing sustainable construction practices in your business.

How much more does sustainable construction cost upfront?

Sustainable construction typically costs 5 – 10% more initially but pays for itself through reduced operating expenses and higher property values within 3 – 7 years.

How long does it take to see ROI from sustainable construction?

Most sustainable construction projects show positive returns within 3 – 5 years through energy savings, reduced maintenance costs, and increased property values.

Where should a small construction business start with sustainability?

Start with energy-efficient design and local materials – these provide immediate cost benefits while building your sustainable construction expertise and reputation.

Do customers actually pay more for sustainable construction?

Yes, research shows customers will pay more for sustainable buildings because they cost less to run and are healthier.

What's the difference between BREEAM and other certifications?

Building Research Establishment Environmental Assessment Method (BREEAM) is the UK's leading sustainable building certification. It assesses environmental performance, health impact, and biodiversity, and is widely recognised by UK clients and lenders.