Do you have a Sustainability linked loan?
Opinion
In the evolving world of ‘green loans’ and ‘sustainability linked loans’, the question arises: How effective are the current sustainability metrics, especially in construction?
All banks are now providing these incentivised loan options, a great initiative to drive sustainability improvement. We have recently completed a number of projects that are either linked to green loans or where a business has science-based targets they are looking to achieve. Our experience with these reveals some eye-opening insights.
Measuring Carbon: A Flawed Approach?
Our analysis showed a significant discrepancy when measuring true carbon emissions versus financial spend methodology. The commonly used international carbon data doesn’t align with the unique costs of building in New Zealand. This raises questions about the accuracy of current sustainability benchmarks.
Spaceworks: Beyond Numbers
At Spaceworks, we believe in a holistic approach. Our focus on embodied carbons has led us to discover that in cases where construction is part of a clients business model as much as 40-60% of their carbon emissions come from embodied carbons. This is where we can make a tangible difference.
The Aesthetic Balance
Sustainability doesn’t mean compromising on design. In one such project we provided reduction strategies specifying lower carbon products that delivered on science based target goals and maintained the design integrity. Previously thought to be the domain of a quantity surveyor due to carbon accounting being all about numbers, it is in fact integral to have design at the table. Maintaining a design while significantly reducing the carbon footprint – a win-win for both the environment and our clients.
Key Takeaways
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- Relying solely on dollar spend for measuring embodied carbons can be misleading.
- Achieving true carbon transparency requires a specialised approach – one that Spaceworks is uniquely equipped to provide.
- Our journey has been more than just crunching numbers; it’s about integrating sustainability into the very fabric of design.
