The construction industry knows its responsibility in environmental matters - there is an environmental system boom going on

"Companies are faced with various demands at a fast pace from different directions and from different actors. Now it's urgent to get the systems in order", Kiema huffs. "Several companies have already managed their affairs in a good way. Still, there are still many new and growing companies where work on environmental systems is waiting to be done."

Requirements come through legislation and the EU, but also from builders and, for example, the municipal sector. "Municipalities have begun to demand that the environmental and responsibility systems must be in order."

"In the construction industry, you want to get things right," Kiema knows.

Environmental awareness has taken center stage in the construction industry. Companies have become aware of the importance of responsibility in their business and that the environmental effects of their own operations can be influenced in a controlled manner.

Homemade actions are no longer enough. We need management and environmental systems that keep companies on the right path and their processes under control. It is important to get the entire supply chain committed.

Pressure from the EU and legislation

The background is affected by several factors. One of them is the goal set by the EU to be carbon neutral by 2050, where Finland moves the hands of the clock to a position fifteen years earlier than other EU countries. This decision affects all structures of society, and the construction industry is not left behind.

The CSRD directive guides sustainability reporting

Perhaps the most concrete regulation driving the introduction of company systems comes from the EU. Sustainability reporting in accordance with the CSRD directive rises to the same level alongside financial reporting. At first, sustainability reporting concerns listed large companies, but in the future it will expand to cover an increasingly large number of companies, regardless of industry.

The Construction Act aims at carbon neutral goals

The new construction law returned to the lawmaker's desk from the opinion round brings with it obligations for companies.

Along with smoothing construction, improving quality and digitizing the built environment, the law also focuses on combating climate change. The longevity of buildings will be supported and cultural environments will be nurtured. Promoting the circular economy is also on the agenda.

Large companies already have environmental systems in place. Now they are built in medium-sized companies.

"Sooner or later, things will happen to every operator in the construction industry", Marko Kiema assesses.

"If things are not in order, the reputation of the company is rather damaged. Environmental systems are not rocket science and in themselves are not the answer to everything. Companies need to take more clear responsibility for their own responsibility. It is no longer enough to make money efficiently."

Kiema believes that before long the municipal sector and large operators will switch to the operating method already introduced in the capital region, where contractors are required to have a certified environmental system in order to be able to participate in contract tenders.

"The system is required because the customer is himself committed to reducing his own environmental impact. In order for it to be able to influence the realization of its own goals, it must have the opportunity to influence the entire supply chain. In this way, all requirements expand further in the supply chain", Kiema formulates.

"If a company wants to participate in big tenders, the environmental system should be ISO 14001. It meets all the requirements. RALA's environmental system is also accepted for tenders by cities and municipalities."

"As a society, we have to commit to a common good cause. Everyone has to be on the bandwagon," says Marko Kiema. "If there is someone in the group who does not commit to the common rules of the game, do we want to play with him?" he asks.

"Companies that understand the importance of environmental systems see it as operational development," sums up Kiema.

"We in the construction industry want to be part of the development in the vanguard of the green transition and environmental protection", says the CEO of KUMONI Oy and also an influential member of the board of Rakennusteollisuus RT Pasi Pitkänen.

Speaking to the representatives of fellow companies, Pitkänen has recommended the SME sector to start developing environmental systems. "Whether you want it or not, it's just everyone's job."

Half a year of crunch

After hearing about the decision of a southern Finnish municipality to require companies to have a certified environmental system as a condition for participating in a contract competition, Pasi Pitkänen was led to conclude that the same practice would spread to the provinces. "In our own company, we set out to tackle the environmental system in the front field, so to speak," Pasi recalls his feelings from a year ago.

After half a year of work, the ISO 14001 environmental system of KUMONI Oy, which specializes in renovation construction, was ready.

"We hired a temporary worker who collected material. The work required quite a lot of working hours from me, both in the office and on the construction sites. We also received support from the ELY Center."

The ISO 9001 quality system, which had already been prepared and certified, helped the company in preparing the system. "The most important thing was to think about things in terms of our own operations and what truly serves our company."

"The quality system and the environmental system must be in harmony with each other. That's why we also had to update the environmental aspects of the quality system, which were missing from the previous version," says Pitkänen. "Both systems are based on continuous improvement. We have now documented and achieved the starting level. From now on, every year we will improve our environmental activities", he assures.

Pasi Pitkänen finds building the systems of a company focused on repair construction to be meaningful and eye-opening.

The company admits that the environmental system has an effect that increases market value and promotes responsibility, but the company gets the biggest benefit through practices. "We have to really think about our processes and the recycling of the waste generated in the renovation. Here, the environmental system has proven to be an important work tool."

"Our waste management company provides us with an environmental report every month. It details all waste types, amounts and their recycling rate, as well as how our waste management company compensates for our waste."

"Our waste management is completely carbon neutral."

"The environmental system really serves us," sums up Pasi Pitkänen.

"Yes, it was a pretty clear vision that ISO 14001 would be chosen", says the person who worked as the implementer of KUMONI Oy's environmental system Antti Huuskonen From Talentree Oy.

"We went through all the company's sites in order to get as comprehensive a picture as possible of the processes, material flows, purchases, subcontracting and what kind of possible emissions are generated by the company's processes," Huuskonen enumerates.

"Through these, significant environmental aspects were defined. A scoring method was created, with which environmental aspects can be qualitatively reassessed annually. These criteria were used to select the most important ones that can be influenced", Antti Huuskonen recounts the stages of system construction. He points out a possible pitfall from the consultants' point of view: "Does the organization identify exactly the right things that can be influenced and the things that have influence?" Huuskonen emphasizes transparent cooperation with the company.

In the case of KUMONI, everything went smoothly. After all, Talentree had already collaborated with the company since 2014 when preparing a quality system for it, and through that he had become familiar with the company's processes.

When the company's operations develop or change, the environmental system must also change with it.

"If something harmful to the environment is identified in the early stages of system construction, immediate corrective measures must be taken."

"Nothing was found with KUMONI", confirms Antti.

Huuskonen says that in Finnish companies, regardless of the industry, things are usually done with care. In the construction industry, the obligations are handled well and official supervision is so strict that nothing revolutionary is often found.

"Still, there is always room for improvement."

Once significant environmental aspects have been identified, a risk assessment is carried out, after which goals and metrics are set. The goal is to collect numerical data so that development can be monitored over the years.

"Through the process, an environmental program, concrete measures and a timetable for reaching the set goals and achieving the desired results are created. With the help of the environmental system, transparency is created in what is done from the point of view of environmental effects", Antti Huuskonen lists.