UK contractors are trailing behind European counterparts in sustainability initiatives, recent reports suggest.
- Dutch consultancy L.E.K. Consulting highlights the widening sustainability gap within the construction sector.
- UK firms show less strategic maturity compared to German, French, and Spanish counterparts.
- Economic pressures are sidelining sustainability priorities for UK contractors.
- Larger firms in the UK perceive sustainability as a way to innovate and cut costs.
A recent report from L.E.K. Consulting reveals a concerning trend: UK construction contractors are not keeping pace with their European peers in terms of sustainability. The report highlights a sector in flux, where immediate financial concerns often overshadow essential long-term goals, including sustainability, safety, and productivity.
While economic factors are pressurising firms to deprioritise sustainability short-term, many larger companies still see it as a valuable strategic focus. For these firms, sustainability transcends mere regulatory compliance, representing instead an opportunity for innovation and potential cost reduction, particularly through enhanced energy efficiency.
In terms of strategic maturity, UK contractors lag behind those in Germany, France, and Spain. For instance, while 6% of UK firms have yet to begin a sustainability strategy, the figure is only 1% in France and 2% in Spain. Furthermore, nearly 17% of UK contractors maintain minimalist approaches, focusing solely on regulatory compliance, compared to somewhat similar figures in Germany and slightly lower ones in France and Spain.
The proportion of UK firms adopting a ‘progressive’ approach—where sustainability is integrated as demanded by customers—has doubled from 22% in 2022 to 44% in 2023. However, this rise still trails behind Germany’s 50%, Spain’s 49%, and France’s 48%.
Regarding ‘innovator’ firms, which see sustainability as central to strategic agendas, the UK’s increase from 9% to 11% is modest and remains below that of Spain (19%), France (17%), and Germany (15%). This underlines the need for UK contractors to enhance their sustainability initiatives if they are to remain competitive.
The report concludes that proving return on investment is crucial for immediate sustainable solutions, emphasizing the critical role of building performance in reducing costs and achieving decarbonisation objectives. At the same time, firms must tackle the impact of stricter regulations such as carbon taxes while pursuing carbon reduction strategies.
The UK’s construction sector must bolster its sustainability strategies to match European standards.
