The future is looking green, and it comes as no surprise that environmental, social, and governance (ESG) activists and initiatives have targeted the construction industry. As it stands today, buildings contribute to 39% of carbon emissions associated with global energy usage: 28% originates from operational emissions required to heat, cool, and provide power to buildings, while the remaining 11% arises from construction materials and processes. 

Due to geopolitical conflicts and the unprecedented pandemic in 2020, supply chains have been grievously disrupted and inflation has been on the rise. These factors all tie in together in the increase of construction material cost, causing projects to be less efficient and more expensive. According to the World Economic Forum, “there is increased optimism across all sectors except construction, as inflation expectations fall sharply.”

In this sense, buzzwords such as decarbonization and ‘green’ buildings set the context for the future of the industry. The green building materials global market size was valued at $377 billion in 2022, and is expected to grow to $951 billion with the start of the new decade in 2030. However, one key factor in efficiently managing resources and in fulfilling the transition to green buildings is that of data-driven decision making, with a Cypriot-founded company leading the way in the construction industry’s sustainability data. 

There are several initiatives established to help organizations and businesses to shift to decarbonization, which refers to the reduction of carbon dioxide emissions created from various processes including construction. This global commitment was set by the 2015 Paris Agreement, adopted by 196 countries at the United Nations Climate Change Conference in Paris. Their aim is to reduce greenhouse gas emissions by 43% in 2030. 

Net zero goals align with the objectives set by the 2015 Paris Agreement. By reducing use of fossil fuels, further implementing renewable energy sources, and increasing energy efficiency, countries and organizations can achieve net zero goals by 2050.

For the construction industry to align with initiatives, changes had to be made in the way data was observed, and how that data could facilitate greener construction, carving out the necessity for “proptech” and “contech”. Proptech (property technology) leverages the utilization of technologies such as artificial intelligence, virtual reality, and the internet of things to propagate more efficient use of materials and energy to reduce environmental impact.Contech, or construction technology, is similar, but also includes data analytics in order to enhance sustainability in construction. 

The sustainability of construction projects is also of great value to real estate investors and property owners, as Ernst & Young (EY) highlights that “putting ESG at the heart of your real estate strategy has a direct impact on underlying asset value. Landlords who invest in ESG will see higher property values.” EY continued, adding that “technology and a strong data analytics platform frequently underpin green buildings, enabling landlords to respond to regulator and stakeholder inquiries on a consistent basis. You can’t measure what you can’t see - and proptech offers a critical way to identify, measure, and reduce GHG emissions.”

This transition to a greener future is especially critical for Cyprus. The cost for construction materials in Cyprus rose sharply by 8.15% since March 2022. Globally, nonresidential construction, as well as commercial construction, are 38% higher than in early 2020. 

To mitigate further increase of cost and to ensure sustainability in construction projects, there needs to be an efficient use of resources, use of renewable energy such as solar and wind energy, and reduction in pollution and waste. By using sustainable materials and proptech, buildings will require less energy to operate, therefore reducing operational costs, and can reduce the pollution emitted throughout the various construction phases.

A leader in this direction towards sustainable construction and architecture is Cypriot-founded 2050 Materials. Founded by Phanos Hadjikyriakou and Stephanos Stephanov, the company is based in London, UK, and was founded in 2021. They aim to contribute to decarbonization and the facilitation of the construction of green buildings through their online platform. Their platform consolidates all of the information that is pertinent to sustainability data and simultaneously provides simplified ratings for everyone to have a clear understanding of each product’s performance compared to their alternatives.

This way, they ensure transparency among various stakeholders, as well as contribute to the democratization of construction projects, empowering various professionals and workers to weigh-in on the efficacy of a project.

2050 Materials founder Phanos Hadjikyriakou shed some light on the company’s vision and mission, stating that:

“2050 Materials aims to be the leading provider of sustainability and performance data for construction materials globally. Our team is currently working with some of the leading design and engineering firms globally to embed our solution into the processes of major construction projects across Europe and the UK. We focus exclusively on the construction industry, as it's an enormous market with a huge climate impact. The long-term goal is to enable a climate-neutral planet by leveraging AI in building design, construction, and procurement.

There's many challenges related to collecting and sharing data. The two main ones today are the lack of standardization in the data, and limited manufacturer assessments for their products. Our mission is to promote transparency, standardization, and collaboration to solve some of these challenges for the industry as a whole.”

The construction industry is facing increasing pressure to address its environmental impact and align with global initiatives for decarbonization and sustainability. Buildings currently contribute significantly to global carbon emissions, both through operational activities and construction processes. The rising costs of construction materials, coupled with supply chain disruptions and inflation, further emphasize the need for more efficient and cost-effective solutions. The emergence of proptech and contech, leveraging technologies and data analytics, offers opportunities to optimize resource usage and reduce greenhouse gas emissions in construction projects.

Sustainable practices in the industry not only benefit the environment but also have a direct impact on property values, making them appealing to real estate investors and property owners. Adopting ‘green’ building materials, renewable energy sources, and leveraging data-driven decision-making processes can lead to more energy-efficient buildings, lower operational costs, and reduced pollution throughout construction phases.

With the future looking progressively greener, making data-driven decisions is imperative. As the World Economic Forum frames it, “no less important - since companies cannot manage what they cannot measure - are contemporary design-build platforms and sourcing databases. Some are already working in this space to provide systems that comprehensively track climate-change-related data.” Platforms such as 2050 Materials pave the way forward for stakeholders to have a clearer view of what needs to be done to achieve net zero goals and the decarbonization of the construction industry.