THE ROLE OF RESPONSIBLE SOURCING IN CREATING A SUSTAINABLE CONSTRUCTION SUPPLY-CHAIN

misbe2011 Tracking Number 31

Keywords: Construction materials and products; Procurement; Projects; R&D; Sustainability. ABSTRACT Responsible sourcing (RS) provides a means to manage and ensure the attainment of sustainability objectives by procuring materials with a certified provenance. It is demonstrated typically through an organisation’s procurement policy, via its purchasing decisions and practices, and addresses a range of environmental, economic and social considerations. Use of RS provides a pragmatic link between the ‘triple bottom line’ aspects of sustainability and greater accountability and traceability in the supply-chain. Many people will already be aware of similar schemes and supplier auditing in other sectors (e.g. FairTrade and Rainforest Alliance), but there is no such prominent position for responsible sourcing in the construction industry, with the exception of FSC/PEFC schemes for timber. Recent developments suggest this situation will change imminently. In the UK, the government requires that 25% of construction products shall be from schemes recognised for responsible sourcing by 2012 and major contractors are considering raising this target even further for major commodities like aggregates, metals, steel, concrete, bricks and glass. Construction stakeholders have also raised serious questions about the environmental and ethical credentials of sourcing of materials from some countries. For these reasons, the construction industry is becoming increasingly aware of the role that responsible sourcing can play in creating, measuring and demonstrating a sustainable supply-chain; in addition; • Certification and assessment standards now exist (e.g. BES6001) • Credits can be gained in assessment schemes such as BREEAM, Code for Sustainable Homes and CEEQUAL • A reasonable range of certified products is now available including aggregates, cement, concrete, reinforcement and bricks. • There is a modest, but increasing market pull from clients and investors. However, the construction industry lacks general awareness and expertise in RS; few people have the experience of developing such supply-chains and more materials suppliers need to offer certified products. New research is bringing together industry and academics to disseminate knowledge on RS, exchange good practice, create training materials and develop a research agenda. Early results from an industry survey and 12 company case studies show that major materials industries are instrumental to provision of RS goods; clients and major contractors will drive change in the supply-chain; robust supplier auditing can be used to engage sub-contractors; scope for enhanced reputation and market differentiation are encouraging many parties to seek certification; but questions remain over the cost of implementation, involvement of SME businesses and market demand. This research has important implications; responsible sourcing has the potential to transform the construction supply-chain into a transparent and sustainable enterprise, but market forces rather than the notion of ‘doing the right thing’ are likely to determine its widespread adoption. Our research will map the way forward for RS in the construction sector by considering its context, markets and technologies and identifying critical research directions.