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Sustainability in the built environment: Factors and a decision framework

Article · January 2009

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 SUSTAINABILITY IN THE BUILT ENVIRONMENT:
FACTORS AND A DECISION FRAMEWORK

Joseph Sarkis
Graduate School of Management
Clark University
950 Main Street
Worcester, MA 01610-1477, USA
Tel: (508) 793-7659
Fax: (508) 793-8822
E-mail: jsarkis@clarku.edu

Laura Meade
M.J. Neeley School of Business
Texas Christian University
TCU Box 298530
Ft. Worth TX 76129
Tel: (817) 257-7036
Fax: (817)-257-7765
Email: l.meade@tcu.edu

Adrien Presley
Division of Business and Accountancy
Truman State University
100 East Normal
Kirksville, MO 63501
Tel: (660) 785-4361
Fax: (660) 785-7471
Email : apresley@truman.edu

ABSTRACT

Important factors and a decision framework incorporating economic, environmental and social
aspects within a built environment context sets the stage whose overall objective is to aid a
decision maker in selecting the sub-contractors that can most sustainably contribute to a
construction project. In our evaluation of the built environment we introduce an extension to the
ecological modernization theory at the organization level which we term sustainability
modernization theory. This theory provides us with the underlying framework for the overall
evaluation, that innovations (technological, procedural, or process) may be the most effective
method to integrate sustainability such that win-win-win opportunities may be maximized.
Sustainability, LEED Requirements, Ecological Modernization Theory, Sustainability
Modernization Theory

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 INTRODUCTION

Sustainability has become a strategic imperative for almost all businesses in the early stages of
this century and has evolved into a fundamental market force affecting long-term financial
viability and success [26]. In this evolution, some have simplified and categorized sustainability
to three primary components often referred to as the ''triple-bottom-line”: economic, social, and
environmental components [33]. The concept of sustainability has become more important for
organizations and has permeated a number of decisions management in these organizations need
to consider. A major driving force for these organizations is the business value possibilities
associated with managing sustainability effectively [20].

This research identifies important factors and presents a decision framework that incorporates the
economic/business, environmental and social aspects within a built environment context while
building some initial concepts of Sustainability Modernization Theory. The decision model sets
the stage whose overall objective is to aid a decision maker in selecting the sub-contractors that
can most sustainably contribute to a construction project. Within the three major dimensions we
utilize the LEED requirements for environmental sustainability evaluation and introduce a series
of factors related to social sustainability. In our evaluation of the built environment we introduce
an extension to the ecological modernization theory at the organization level which we term
sustainability modernization theory. This theory provides us with the underlying framework for
the overall evaluation, that innovations (technological, procedural, or process) may be the most
effective method to integrate sustainability such that win-win-win opportunities may be
maximized.

THE BUILT ENVIRONMENT

The built environment includes all buildings and living spaces that are created, or modified, by
people. In addition to the buildings and spaces themselves, it also includes the infrastructural
elements such as waste management, transportation and utility transmission systems put in place
to serve this building space. When evaluating the built environment, it is important to take a
broad view incorporating broader stakeholders and communities, beyond immediate investors or
building users. The intergenerational aspect of sustainability is even more pertinent in the built
environment since the structures are typically influencing the needs and requirements of future
generations. Sustainable construction is an emerging field of science that aims at incorporating
the general sustainable development concepts into conventional construction practices [19]. The
triple-bottom line factors associated with the choices made in the design and construction of
buildings and outdoor living spaces must also be balanced. In addition to balancing these often
conflicting goals locally, the decisions made about the built environment must also consider how
choices made about building materials and systems can have environmental and social impacts
on broader regional and global dimensions. For example, the entire supply chain for construction
should be evaluated - from the selection of sustainable material such as bamboo wood to finding
contractor and subcontractor sources with corporate socially responsible practices.
The factors and a decision model for sustainable selection decisions in the built environment
organizations, specifically those organizations in the commercial, industrial, and commercial

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building sector of this industry will be introduced. Initially we will provide some dimensions of
the built environment industry.

Built Environment Processes and Actors

To be able to evaluate the sustainability dimensions of the built environment, it is worthwhile to

understand the life cycle processes for industrial and commercial buildings and the actors who
play a role within these processes. The process can be quite complex with a number of sub-
processes that may have varying levels of importance depending on the characteristics of the
built environment project. For commercial property the process may range from evaluation of
property decisions to occupancy and management of these properties during the usage phases to
end-of-life.
The major phases begin with the early evaluation and acquisition of the necessary resources for
the property. Next come various designs and estimated costs associated with project alternatives.
The early stage of acquiring the appropriate permits for construction will occur after the
appropriate design is selected. Investors and developers play a larger role in acquisition of
financing from various sources. Once these capital resources are lined up, construction and
construction planning organization will begin. Property leasing/letting/rental may occur next
depending on whether a sale of property will be made before letters are determined. The final
stage is occupancy and maintenance of the property.

Even though each stage has some sustainability influence usually the early stages of acquisition
and design will play the largest role in the life cycle sustainability implications of the property.
Similar to product life cycle project planning where a vast majority of the eventual costs of an
overall project will be determined at this early design phase, sustainability implications will also
be determined at these early phases. Thus, the major opportunities to design the built
environment for sustainability occur at these early phases.

The actual sustainability influence of a commercial property may occur at various stages
depending on the purpose of this commercial property. For example, there might be significant
influence in the construction phase if it is a property that will not be used frequently, such as a
storage location. Other types of properties such as apartment buildings with significant usage
may have the largest sustainability burden/implication at the later occupancy and maintenance
stages. Another factor that comes into play is the expected life of the commercial property and
may shift the burden to later stages as the life of the project increases. Finally, we introduce a
‘closed’ loop aspect to management of the built environment properties since materials and land
may be reused or made useful for other purposes at the end of a structure’s life and these issues
should be considered, even though the life of a structure may be managed by future generations
and not the one that designed, constructed and occupied the property.

SUSTAINABILITY MODERNIZATION THEORY

Ecological Modernization Theory

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Ecological modernization theory (EMT) is a theory for environmental innovation that has been
offered as a possible solution to the conflict between industrial and commercial development and
environmental protection [24]. EMT is particularly useful to study issues on environmental
protection relating to strategic planning by governments and restructuring of production by
manufacturers. Applications and development of the theory have been mainly confined to the
role of governments in terms of regulations and policies designed and implemented for
environmental protection. But there is a growth of the application of the theoretical framework
to organizational and inter-organizational (supply chain) practices.
The idea of ecological modernization is to ease environmental problems by making resources
less wasteful and thus more sustainable, while retaining the basic system of capitalist production
and consumption. The approach to environmental protection can be seen by business enterprises
not as a ‘problem’, but more as an ‘opportunity’. EMT suggests that manufacturers can
overcome the considerable barriers to innovation which prevent them from moving beyond
control technologies to consider clean technologies, from complementing technological change
with organizational change and from exploring the strategic as well as the operational
opportunities for improvement [24].

Ecological modernization is concerned with a continual process of institutional, macro

(government, nation) and micro (company)-level, reform coupled with technological innovation
to increase the environmental efficiency of an economy [23]. At an organizational (micro) level
of analysis, EMT is synonymous with strategic environmental management in individual
organizations [1] [15] [23] [24] [28] [31][39]. EMT reinforces the views of management scholars
who reframe environmental problems as inefficiencies or productivity loss [9] [30]. EMT
emphasizes the need for corporate management to recognise ecological issues as a means of
enhancing competitiveness. EMT puts heavy emphasis upon technological advancement; the
invention-innovation-diffusion of new, cleaner technologies and techniques [28].
There are immediate and long term objectives of EMT. The former include waste reduction and
elimination, resource recovery and reuse, and dematerialization. Long-term objectives relate to
resource conservation and clean production [23].

Even though the built environment as rarely been integrated into the discourse on EMT, recent
efforts have been made by leading countries such as the Netherlands to begin involving this
industry [25]. Technological and process improvements that can have substantial environmental
and economic benefits can range from new energy technologies such as waste heating from
nearby manufacturing facilities in eco-industrial parks to effective development of new waste
water and micro-recycling systems that can be implemented by plumbers. Numerous examples
exist for EMT in the built environment; effective instantiation and implementation requires
significant contractor and sub-contractor support.

Sustainable Modernization Theory

The expansion of EMT to a Sustainable Modernization Theory (SMT) requires the inclusion and
weighing in of additional social metrics and influences. At the organizational and supply chain
level, it means that corporate social responsibility will aid in the improvement of ecological and
economic performance. This triple-win (social, environmental and economic) becomes more

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feasible. ‘Doing well by doing good’ is the term that has been espoused to show that
organizations can do well on these performance metrics. The research [3] [27] [32] has shown,
but to some mixed results, that socially responsible organizations also perform well, at least in
the short term. It is also expected that in the long-term these organizations will continue to be
socially healthy organizations. The basic underpinning of SMT is that integrating innovation and
technology (process, product, control) within organizations should help organizations achieve
economic, social and ecological benefits.

Ecological Modernization Theory is an evolving concept that argues that there is little conflict
between environmental protection and economic growth, who may actually be mutually
reinforcing, This is the standard win-win argument. Thus, ecological modernization at the
industry and micro-economic level seeks to identify, evaluate, and implement solutions that will
help to advance organizations and the industry in both economic and environmental dimensions.
Expanding this theory to ‘Sustainability Modernization Theory’ would look at technological and
industrial solutions that also provide a ‘win’ on the third, social dimension. This perspective
provides some of the theoretical underpinning needed to help understand the choices and
directions that sustainable organizations will make. In our case, the three ‘triple-bottom-line’
metrics, economic, social, and environmental will be categories in a series of factors that may be
used as a decision model that can help built environment organizations balance their plans from
sustainability modernization theoretic perspective.

A SUB-CONTRACTOR SELECTION PERSPECTIVE

In this section we discuss various decision models that have been utilized in the context of the
built environment. These decision models set the foundation for the decision framework
presented in the following section. The decision models presented show an existence of a gap in
the research that address the development of broader models for sustainability purposes.

Decision Models in the Built Environment

The building contractor selection process is critical for clients seeking to construct buildings and
other large construction projects. Without an appropriate method for selecting the most
appropriate contractor, the performance of the project will be affected. The selection decision is
dependent on numerous criteria and multiple criteria decision making tools would be most
appropriate for this selection process [5]. MCDM tools have also been used for various steps in
the building process including the selection of construction locations [8], projects and project
designs [6], strategic partnering [7] and even the end-of-life situation of derelict buildings [42].
The integration of environmental factors into construction decisions only adds to this complexity
of factors that need to be considered for any of the construction process steps. Some of these
frameworks include the development of a pollution mitigation factors used for early construction
design plan selection using various Analytical Network Proces (ANP) models [8] and multiple
criteria models for specific technology selection also at the design stages of building construction
[25]. Multiple criteria approaches and techniques are initially based on the development of
factors. Sustainability factors have traditionally focused on environmental issues [34] [35].
Decision tools incorporating performance metrics for sustainable building evaluation is still in its

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 infancy with the explicit use and application of a comprehensive set of social and environmental
set of dimensions still emerging [11] [42].
The complexity of decisions within construction projects can be quite large. There are also
characteristics of level of analysis that can help structure the decision environment and target or
select appropriate tools for managerial decision making. There dimensions of levels can include
the project assets level which can range from specific technologies and supplier-sub-contractor
selection, to overall project selection, to whole community programs whether they are urban
development, rural development or regional development planning. The next dimension that
could be considered is the life cycle of the project from early planning and site location to end-
of-life management of property. The final dimension is are the performance metrics that can be
used in the evaluation from basic business, operational and design performance expanding out to
financial, environmental and social performance metrics.

FUTURE DIRECTIONS AND CONSIDERATIONS

In this research we have identified a major gap in the literature for sustainability and decision
modeling for a specific industry, the built environment. We showed that this industry is quite
important from the general economic, environmental and social sustainability perspectives. For
example, the life cycle of products that emerge from built environment processes are typically
inter-generational. That is, future generations will be influenced by decisions made today in
terms of buildings and supporting infrastructure related to the built environment processes and
products. Thus, more than most products and industries this one has a direct relationship to the
inter-generational management philosophy associated with sustainability.

We also introduced a number of decision factors and attributes that could be considered on any
of the major steps within the built environment’s operational and production life cycle. The
factors that were introduced included economic/business, environmental and social factors, part
of the triple-bottom-line aspects of sustainability and decision making. Typically, decision
models that have been applied to this area have focused primarily on the economic and business
factors associated with the decisions. Some models have also introduced considerations of
various environmental factors and attributes into the decision models. What has been lacking in
the literature and in research is the further inclusion of social sustainability factors into the
broader sustainability decision making environment.

We felt that a good theoretical vehicle and extension would be to utilize the ecological
modernization theory and expand it so ‘sustainability modernization theory’, which would allow
us to balance all three factors into one framework and increase the possibilities of win-win-win
decisions that are of prime importance to all organizations.

After introduction of a general set of factors, we integrated them into a decision making
hierarchical framework that can be analyzed utilizing the AHP approach. The major goal of this
research was to introduce this decision framework that shows the interrelationships amongst the
various factors, attributes and alternatives. We also presented this model within the broader and
more robust analysis of a BCOR methodology.
References Available Upon Request

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