The construction industry plays a critical role in shaping the built environment. However, it also has a significant impact on the environment. According to a 2020 study by McKinsey & Company, approximately 26 percent of all GHG emissions and 37 percent of combustion-related emissions come from the construction and operation of the built environment. And, according to a 2021 report from the World Business Council for Sustainable Development, the construction industry is responsible for 38% (14 gigatons) of all energy-related greenhouse gas emissions each year.

So, as the world grapples with climate change, this sector presents a tremendous opportunity for decarbonization. LEED certification plays a crucial role in promoting sustainable building practices and reducing the construction industry's environmental impact.

But how can general contractors navigate the evolving requirements of LEED v5 to make the most of this opportunity? In early June, I attended the in-person summer meeting for the LEED Steering Committee (LSC), where we discussed several pivotal updates that will significantly impact general contractors.

LEED v5, with its stricter requirements, pushes the boundaries of green building and presents both challenges and opportunities for general contractors, particularly regarding the new waste diversion requirements. This blog post explores the challenges and opportunities presented by the new waste diversion requirements in LEED v5, drawing on insights from the recent LSC meeting.

Understanding Job Site Realities

Urban zero-lot projects often face severe space limitations, making traditional waste management practices like source separation impractical. The tight confines of these sites leave little room for segregating materials effectively, complicating compliance with LEED's stringent waste diversion standards. The fast-paced nature of urban construction also prioritizes speed and efficiency, further hindering thorough waste separation efforts.

Recycling Infrastructure and Its Challenges

During a field trip to Sun Recycling a few years ago, it became evident that while facilities exist to handle construction waste, their accessibility and capacity to process diverse materials vary significantly, impacting the feasibility of meeting LEED’s waste diversion goals. This disparity highlights the need for contractors to adapt their strategies and leverage local recycling infrastructure effectively.

Adapting to New Requirements

Given these constraints, general contractors will need to adapt their strategies. Historically, contractors could rely on waste diversion points to bolster their LEED certifications. However, with the new requirements, these points may need to come from other credit areas, such as the newly created Optimized Building Products credit or Reduce Embodied Carbon credit.

Shifting Focus to Carbon Assessments

The optimized building products credit under LEED version 5 will now require significantly more documentation to produce points, making it a steeper learning curve and a more labor-intensive option. This shift means general contractors will need to invest in robust submittal management processes during project delivery and ensure thorough architectural specifications for all applicable optimized materials used during project development. However, this approach might not be the most efficient or effective path forward, and it's important to consider the impact of this shift.

A more promising alternative lies in the reduced embodied carbon credit. Learning to run LCAs and carbon assessments can provide general contractors with a valuable tool to navigate the new LEED requirements. Per the credit language, contractors can “conduct a cradle-to-grave whole building life-cycle assessment (WBLCA) of the project's structure, enclosure, and hardscape materials. All ancillary structures, such as parking structures or outbuildings, within the LEED project boundary must be included in the calculations.” Contractors can also “Purchase structure, enclosure, and hardscape materials that, in total for the whole project, have lower embodied carbon emissions than if the project would have selected products that met industry average benchmarks.” Or they can “Purchase structure, enclosure, and hardscape materials that have lower-embodied carbon impacts than industry benchmarks as demonstrated by EPDs.”

These assessments allow for a comprehensive evaluation of a project’s environmental impact, offering a clearer pathway to achieving LEED certification.

Trade-offs and Strategic Adjustments

The key point is that because the waste diversion credits have changed, contractors must weigh trade-offs to deliver similar points without relying exclusively on materials procurement documentation. This documentation burden can delay projects due to the time required to obtain valid documentation or escalate prices due to limited sourcing options. Instead, contractors can achieve LEED points by focusing on carbon assessments and leveraging other available credits.

Implementing Carbon Reduction Strategies

To successfully leverage LCAs, general contractors must rethink their equipment logistics strategies. This involves several key changes:

• Locally Supplied Materials: Prioritizing locally sourced materials can reduce transportation emissions and support local economies.

• Lower-Carbon Machines and Fuels: Contractors can also earn points by investing in or renting machinery that runs on lower-carbon fuels or uses more electric equipment, which can significantly cut emissions.

• Quick Connections to Permanent Power: Establishing rapid connections to permanent power sources minimizes the reliance on diesel backup generators, further reducing the carbon footprint.

Trade-offs and the Removal of the Flushout Credit

It's also important to note that the Flushout point from LEED version 4 is being removed entirely in version 5. This change requires general contractors to reconsider their strategies when bidding on LEED projects, as they will need to make trade-offs affecting their general conditions. The absence of the Flushout credit means contractors must find alternative ways to achieve the necessary points, potentially increasing the focus on other areas, such as carbon assessments and material documentation.

The AGC’s Decarbonization and Carbon Reporting Playbook

In parallel with the development of LEED v5, I contributed to the Associated General Contractors of America's (AGC) Decarbonization and Carbon Reporting Playbook last year. This playbook offers comprehensive guidance on assessing, tracking, and reducing greenhouse gas emissions. It emphasizes proactive planning, data transparency, and collaboration with project teams to meet carbon reduction goals. AGC’s Decarb Playbook provides contractors with tools to communicate effectively with project teams and successfully navigate the complexities of carbon reporting for a project. It describes a process for identifying accountability, what to track and report, and how to do so. In addition, the playbook offers a host of industry-identified strategies and tips for reducing carbon emissions from their projects.

The playbook provides strategies for:

• Utilizing energy-efficient equipment and machinery.

• Implementing renewable energy sources.

• Optimizing logistics to minimize transportation emissions.

By integrating insights from the playbook and leveraging the strategies discussed in the LSC meeting, general contractors can navigate the challenges of LEED version 5, achieve certification, and contribute to a more sustainable and resilient built environment.

Conclusion

The transition to LEED version 5 presents challenges and opportunities for general contractors. While the new waste diversion requirements are demanding, they also drive innovation and improvement within the industry. By focusing on carbon assessments, leveraging AGC’s Decarb Playbook, rethinking equipment logistics, and rethinking low-carbon materials procurement, contractors can achieve LEED certification and contribute to a more sustainable and resilient built environment.

Building Internal Capacity for LEED Success

The successful implementation of LEED v5 hinges on a skilled and knowledgeable workforce. Construction companies that consistently build green projects prioritize building internal capacity and strengthening employee resources. Here's how you can get started:

• Invest in employee training: Equip your team with the knowledge and skills needed to understand LEED v5 requirements and implement sustainable construction practices.

• Promote cross-departmental collaboration: Encourage open communication and collaboration between departments like project management, procurement, and field operations to ensure seamless integration of LEED strategies throughout the project lifecycle.

• Invest in technology: Utilize technology solutions that facilitate data collection, waste tracking, and carbon footprint analysis to streamline LEED compliance efforts.

Take Action:

• Download AGC's Decarb Playbook: Gain access to a comprehensive guide for navigating LEED v5 requirements and implementing carbon reduction strategies.

• Explore LEED v5 resources: The USGBC website offers a wealth of information on the latest LEED updates and how to achieve certification. The initial public comments round delivered over 5K comments, and a second public comments round will open later in 2024.

By investing in your workforce, you empower them to become sustainability champions and navigate the evolving demands of LEED v5. This approach will ensure your company remains at the forefront of green building practices.