Environmental Sustainability in Construction Report: ASD Company

This report delves into the critical aspects of environmental sustainability within the construction industry, focusing on the application of the Triple Bottom Line (TBL) framework and sustainable development (SD) principles. It examines the concept of sustainable construction, outlining key considerations for companies like ASD Construction, a firm operating since 1950. The report presents a sustainability report framework, including strategies, analysis, and governance, tailored for a construction company. It also addresses the challenges and issues involved in reporting sustainability efforts. The analysis covers waste management strategies, the importance of life cycle approaches, and the integration of green building practices. The report emphasizes the importance of reducing waste, utilizing renewable energy, and adopting eco-friendly materials to minimize environmental impact and enhance the company's brand image. The goal is to highlight how sustainable practices can improve both environmental performance and business outcomes.

Environmental Sustainability In
Construction

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Concept of Triple bottom lines (TBL) and sustainable development (SD)............................3
2. Concept and key consideration of sustainable construction...................................................4
3. Sustainability report................................................................................................................7
4. Challenges and issues in reporting sustainability..................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Sustainability is a concept which states that all the activities done by a individual or
group of people must try to reduce the usage of natural resources so that harmful impact on the
society would be avoided (Wong and Zhou, 2015). Sustainable construction refers to a
construction process uses by organisation with the aim of protecting environment through saving
natural resources which is limited in nature. For this report, ASD construction company is taken
for consideration which is in construction industry since 1950 and deals in making site like
airport, highways, building etc. Concept of TBL and SD will be explained related to companies
with sustainability construction. Besides this, sustainability report will be developed for a
company by taking various aspects strategies, analysis, governance etc. At last challenges faced
by the company in maintaining sustainability will be elaborated.
MAIN BODY
1. Concept of Triple bottom lines (TBL) and sustainable development (SD)
TBL is a accounting framework used by various companies to assess their performance in
context of three bottom lines i.e., social, economic and environmental as these aspects are
directly linked with the profitability of company. For instance, if any enterprise is working in a
construction industry and providing jobs to the local individual and also maintaining the
environment by reducing carbon footprints and usage of natural resources. Then it will come
under the TBL concept as providing jobs to the unemployed is social in nature. Besides this
depleting usage of natural resources comes under the environmental factor and at last, earning
profit to the shareholders counts under economic aspects (triple bottom line is important, 2019).
TBL is directly proportionate with the good will and profitability of company i.e., if company
attain sustainability in their working operations then their brand image will become positive in
the market thus better profits in the future.
Sustainable development refers to a process of development in which current needs of the
individual or companies if fulfilling without affecting the ability of future individual to meet
their needs and demands of the life. It must be essential for every company to maintain their
usage of resources which is limited in nature and try to reduce their pollution in the society. As it
is affecting the society through global warming, droughts, depleting of glacier etc.

So main motto behind triple bottom lines is make the best out of the available resources
ASD has then only it would be possible for them to attain sustainable business performance in
the competitive market. In the traditional economic bottom line, company focuses on the
economic conditions of the organisation instead of society and environment as well. For
instance, if construction company is hiring the labour who has minimum wage then by this
organisation would be able to earn higher profitability in their balance sheet. But on the other
hand, there are various disadvantage also like exploitation of employees rights, usage of natural
resources in high quantity etc. Along with this, company's image is also deteriorating which are
affecting their profitability in a negative way.
So to cope up with it, company like ASD construction is using TBL with the aim of
getting highest productivity and potential of overall company. Advantages of using this in
context of ASD company is given below,
 Key benefits which is obtained by ASD by implementing triple bottom line is that it
enhances their brand image in the mind of the customer and society through their CSR
activities (The Triple Bottom Line, 2019)
 If ASD image is positive and favourable in the society then it automatically enhances
employees and other stakeholders motivation to a certain level which leads to better
productivity and efficiency while working.
 If all the excess activities which does not counts in the final product is removed from it
then it decrease production cost as low manpower and materials is required. So low
production cost will persuade to higher profitability of the company (Why is the triple
bottom line so important, 2019)
2. Concept and key consideration of sustainable construction
Sustainable constructions is a process of designing, converting or renovating the
construction site by complying with the rules and regulations of the environment with the aim of
attaining sustainability (Ong and et. al., 2016). There are various key consideration which must
be comply by ASD construction is stated below,
 Solid waste must be reduced or eradicate by the company working on a site as it leads to
two profitability aspect for ASD i.e., better utilisation of resources so that production cost
would be reduced to a certain level and other is attaining sustainability so that brand
image would get favourable for their business operations.

 To reduce the carbon footprints produced by company through using solar panels for
electricity so by planting trees in the construction site so that carbon dioxide would turn
in to oxygen for human being.
 To reduce the usage of water by reusing it again with the aim of decreasing the use of
natural resources while making construction. It could be achieved by ASD through
planting dual flush in the bathroom so that less water would be used in the toilet. Besides
this, rain water system could be implement on the site so that waste water would be use
effectively.
Apart from this, ASD construction can also triple bottom lines to attain sustainable
construction in their business operations. For instance, if ASD is regularly doing their CSR
activities to clean the water polluted by them at the time of conducting their operations then it
will count under the sustainability constructions (Sustainability in building design and
construction, 2019). As by cleaning the water, ASD is doing their part in enhancing the
environment conditions, then through this way more trust will be developed in the company by
their shareholders hence better relationship with the stakeholders. At last, by recycling the water,
manpower is required which could be fulfilled by them through hiring local people. So it can be
said that if ASD is able to attain the aspects of TBL then they will automatically achieved the
mission of becoming sustainable in the market.
Life cycle approach is a tool used by companies to analyse and assess the entire
environment impact which would be generated by them in a overall time. Main motto of this
approach is to make the balance between the activities of the company so that they can attain
sustainability in their business operations (Zhong and Wu, 2015). For instance, if life cycle
approach is used by ASD in their working operations then there are many benefits which would
be obtained by them like risk of accidents would be reduce, intensity of pollution in the
environment would be decreased. How ASD could use life cycle approach to attain sustainability
is given below with functional examples of it,
 Designing: At the time of making construction of any building, it must be essential for
company to design their structure accordingly. For instance, if ASD is making their
building then they must try to avoid usage of glass facades as it increases heating effect in
the environment which ends up in increasing global warming effect. Because glass

observes heat due to which building act as a greenhouse hence increasing the temperature
of the society (Advantages & Disadvantages of Glass as a Building Material, 2019)
 Raw materials: It must be essential for every construction company to take care of the
raw materials used in the building. For instance, usage of wood would be negative in
nature as it will reduce greenery in the environment which leads to polluted air inhale by
the human being. So to attain sustainability and comply with triple bottom lines, ASD
must increase their usage of bamboo, cork, desert sand, linoleum etc. as all these
materials are biodegradable in nature (Design Ideas for the Built World, 2019)
 Usage and maintenance: It is essential for ASD construction to achieve sustainability in
every phase of the life cycle approach as then only overall aim of attaining TBL and
sustainability would be accomplished by them. For instance, water should be
automatically stops running if it is not using as there is limited amount of clean water in
the society. Moreover, plants and trees should be plant in the building so that
environment would become cleaner and cooler. Besides this, it will also assist them to
protect the building and people from UV rays which is harmful and fatal in nature (What
is Green Construction?, 2019)
Apart from this, for the maintenance of building, ASD must try to regularly check
the machines they are using for making the building as then only it would be able for them to get
highest efficiency from the machinery.
 Recycling of the defective product: Main way through which sustainability would be
achieved in the business operations of construction company is recycling the materials
after it got demolished or of no use for company. For instance, all the wooden or bamboo
work in the building could easily be recycle through which production cost of ASD
would be reduced to a certain level.
So it can be concluded from the above information that by implementing sustainability and triple
bottom line in the operations, ASD can enhance their profitability by reducing the overall
production cost of the company (Yılmaz and Bakış, 2015). So to summarise it, various aspects
which must be considered by ASD is given below,
 Usage of product which has green label certification as it is biodegradable in nature.
 Identify the greenhouse emission of the building and try to reduce it by opting various
techniques and approaches (Khatib, 2016).

 To implement environmental management system in their working operations so that
proper maintenance of the building would be achieved by ensuring less usage of natural
resources.
3. Sustainability report
 Introduction to company: ASD is an Australian construction company which is
providing services like road, tunnels, buildings construction other than this it is providing
oil gas project, health and defence services. ASD provide construction of building as well
as designs to their clients if they ask for it. If any person want early contractor
involvement, company offer them this facility also. Other than this organisation also give
options of managing contracting in which services like rail network upgrades,
construction of new rail lines, live operating rail environment, stabling facilities, depots,
management of overhead wiring & signalling includes. It is also offering marine
construction services. Company is working from many places apart from Australia, like
New Zealand, Asia, Papua New Guinea. Apart from construction services, ASD is also
providing alliances and joint venture, public private partnership. It has some principle
from which it get guidance and that are integrity, innovation, delivery and accountability.
Company is following a guideline which supports the required behaviour of people it
outline the process of reporting. ASD follow an ethic line which encourages their
employees , sub-contractor and partners not to follow unethical practices. It is an
confidential way through which workers of organisation can raise the issues and can
investigate about it remaining anonymous.
 Strategies and analysis: Sustainability is important for an construction business because
it act as the stem from integration. Flow of these strategies from top management to
operational staff, after delivery is completed operational staff and strategic consciousness
get aligned when they work together in the organisation.
◦ Construction waste management strategy: ASD follow the construction waste
management strategy in which it focuses on reducing wastes. This can be done by
using number of dustbins for different type of garbage because haulers take help of
pickers in separating the material from wastes. This whole process of waste
management strategy help in reducing the land pollution from the world. This is

impacting positively to organisation as it is reducing waste and pollution from the
society and taking care of the cleanliness.
◦ Material selection: As per the Material selection strategy, ASD select raw material
in construction which is made up of recycled products or renewable products like
they can use bamboo for flooring or other woods which is approved by forest
stewardship council. Leadership in energy and environmental design program is also
guiding in low flow faucets, waters saving dual flush toilet and other things. This
help in making the building greener as well as construction site too.
◦ Solar panel strategy: According to this strategy, ASD uses solar panel in their
construction of every building or tunnels. Company's objective is to contribute in
environment and saving it from any kind of exploitation, it is providing sustainable
development to the society. They put solar panels on the terrace of every building so
that from the sun rays ,energy get stored in it and in future it can be used when
needed. This is positive for the company because it is reducing the exploitation of
scared resources and giving alternative of that.
◦ Green and clean strategy: In this strategy, ASD is focusing on making the
environment green and clean by planting trees and flowers around their constructs.
For example it has build a bridge with a zebra crossing in it, they left some space for
planting trees on it. They do it for making the path full of greenery. This is positive
for the company because it is help in sustaining environment by reducing pollution.
◦ Water harvesting strategy: ASD is also apply this strategy while constructing
buildings. In this strategy organisation suggest their clients to allow them for making
it , after the approval, they construct the structure of water harvesting on the terrace
of the building or on the backside of the house. By doing this they are contributing in
the environment by saving water which is not left much on earth. This strategy also
have positive impact on company because it is contributing in sustainable
development.
 Profile: It is an construction company of Australia which was founded by Stanley
Leighton in 1950 and it is working from north Sydney, Papua New Guinea. It was first
listed in Melbourne stock exchange in 1960 after that in 2004 it bought stake of 70% in
Wren Rollen group. They have covered a long way like 70 years. In January 2015 it get

its new name as ASD constructor after the merger with CIMIK group construction
business of Leighton contractors. They have put this name because it reflects their
heritage of construction, civil project and building. They created a logo which shows the
image of transformation. After early work, the organisation expanded itself in 1971 and
2001 through redevelopment. ASD started growing in in 1991 and 2001. this was
established in 1937 by five brothers a small business in Queensland darling downs after
that in 1985 it launched its mining in Indonesia and continued their international
operations. Company's mission is to provide safe projects to their customers, rewarding
and fulfilling their people's career and to create sustainable return to their shareholders.
They cover range of models for doing it like design and construct and management of
that construction.
 Reporting parameters: It refers to how employees is communicating with their
superiors, board of directors, subordinates within the premises of the organisation. If
open communication is supported by the management then employees would be able to
perform with their highest potential as their motivation while working becomes higher
(Piecyk and et. al., 2015).
 Governance, commitments and engagement: It refers to combination of rules and
regulations which is formed by company so that activities done by the company will align
with the mission and vision of the stakeholders. Main work of ASD is to make the
balance between all the stakeholders so that continuous growth of the enterprise would be
attain. Various governance of the ASD is given below,
◦ Nowadays, employees of an organisation comes under the asset instead of liability as
they are the one who perform with their highest potential with the aim of attain the
mission of the company (Kamali and Hewage, 2017). So if employees are not
towards their company's mission then it will only incur loss for them in the future.
For instance, if employees of a construction company is not happy with their
management or managers then they will automatically reduce their productivity level
by working. It will leads to overall decrease in revenue of the company in the future.
To tackle this situation, ASD have set their wages and employees according to the
industry standard and increases on a yearly basis (Tan and et. al., 2015). This factor
enhances motivation level of the employees which will persuade to better

productivity of ASD. Moreover, perks, incentives, promotions etc are awarded to the
employees on the basis of their performance in the company rather than on the basis
of personal relationships, favouritism etc.
◦ As mentioned above, it is essential for companies to follow all the rules related by the
protection of environment or society they are operating as if they would not then
chances of facing legal issues goes higher (Fregonara and et. al., 2016). So to cope up
with that, ASD has implement triple bottom line in their working operations so that
economic, social and environmental benefits would be provided to the society.
Moreover, regular audit is conducted of the machinery ASD is using in their
operations and if any equipments found faulty then replacement would be done so
that higher productivity would be obtained from that (Importance of Corporate
Governance in an Organization, 2019).
 Management approach: Management plays an essential role in the success of an
organisation as their work is to take the maximum utilisation of resources from the
available resources (Gan and et. al., 2015). For instance to motivate the employees to
work harder and sustainable, ASD uses maslow theory of motivation which states that
there are five aspects which must be fulfil by them to motivate their employees. First is
physiological phase which includes food, sex, salary etc. To comply with it, ASD provide
wages and salary on the basis of performance so that discrimination would be avoided.
To attain the second step of safety, ASD makes their working environment safe and
healthy by using high standards of governance. Next step is social in which ASD takes
opinion of their employees before taking any step so that their motivation remains high
moreover promotions and incentives are given according to the performance which fulfils
esteem phase. So by motivating their employees, ASD is able to earn high profitability
and better sustainability in the market (Maslow Motivation Theory, 2019).
Other management approach used by the ASD is Total quality management which has a
purpose of improving organisation ability to perform better in the market by reducing excess
work from the working operations. There are many advantages of TQM for ASD like quality of
the building will increased but on the same side production cost is also decrease which enhances
profitability of ASD. By using highest quality of raw materials, sustainability and TBL would be

attain by them which is positive sign for their future growth and performance (Total quality
management in construction, 2019)
 GRI and its framework: GRI stands for global reporting initiative, it is established as an
international standard organisation which gives support to business and and government
(Magrini and Franco, 2016). They can raise issues like climate, human rights and
corruption to the GRI. Customers, government and investors are increasing the demand
of transparency about how economic, social and environment impact the working of the
company for which organisations has started publishing sustainability report (CSR or
ESG). They have their own sustainability framework which help the organisations in
gathering information. These frameworks are used by multinational companies,
government, small & medium enterprises, NGOs and industry groups. Their vision is to
create such an economy in which company can manage their performance and can report
transparently. Its mission is to guide and support company to make reporting standard
practice sustainable.
4. Challenges and issues in reporting sustainability
Sustainability report is a document produce by company which includes economic,
environmental, social and governance aspects of them. Main motto behind conducting
sustainability reporting is to identity the weakness or obstacle faced by the ASD so that proper
plan would be made by them to remove it (Nazarko, 2015). Along with this, company also
ensure all the activities which are affecting the environment negatively and try to minimise it
with the aim of attaining higher goodwill in the market (Hashemi, Cruickshank and
Cheshmehzangi, 2015). Various challenges and issues faced by ASD in reporting sustainability
is explained below,
 Driving force in the construction industry is price of the product i.e., building or any
other site. So if low cost is provided by other company in the same industry then
customers would switch their provider as they are price sensitive in nature. So if ASD
needs to acquire more market and customer share in the market then they have to lower
down their prices which will also affect the quality of raw materials used in a negative
way. But on the other side, ASD also has to take care of the sustainability they have to
comply with (Wilburn Green, Toms and Clark, 2015). For instance, if those resources
which are less in price and quality is used by ASD then it will affect tehri brand image in

the market which is a negative sign for their future profitability. But on the other hand, if
they are using biodegradable resources then it will affect their number of customer as no
one wants to pay higher pricing for the same product.
 Other aspect which is a challenge for companies like ASD is usage of natural resources.
If any construction company wants to enhance their sustainable in the market then they
have to use natural resources like bamboo, desert sand, timber etc. But on the opposite
side, usage of resources will persuade to depletion of resources from the environment
which is a negative sign for future generation. So the severe challenges which ASD is
facing is whether to use the natural resources for their product or not (Häfliger and et. al.,
2017). For instance,, if ASD is using bamboo to make their doors and windows in the
building then it would be against their sustainability mission as cutting the trees leads to
deforestation which is negative for the environment. Along with this, wood is limited in
nature it is planted by the society itself. But on the other side, if ASD is using Bamboo,
then it will deplete the natural resources to a certain level due which is against their TBL
approach. So now ASD dilemma is to use which factor as every aspect will create a loss
for the environment or for company.
CONCLUSION
As from the above mentioned information, it can be concluded that sustainability assist
company to gain competitive advantage over others by maintaining their brand image in a
favourable way. Strategies should be effectively formed by the firms while operating business
operations so that growth and sustainability would be maintained in the marketplace. It is also
very important to consider proper parameters and commitments of employees so that good brand
image of firm can be build in marketplace. It is also very important to consider all the challenges
while operating operational functions so that strong sustainability would be achieved among their
competitors.