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Organizing for Sustainable Innovation

A number of developments have converged to place sustainability on the corporate agenda of large construction firms.These include a raft of government and industry set targets, legislation and regulations, growing client demand, the requirements of socially responsible investment, and pressure from various publics. In response, firms have, over the past decade, incorporated sustainability into their business strategies in a number of ways. Strategies range from those directed at enhancing longer-term profitability, efficiency and competitive advantage to those which (also) promote ecological and human sustainability as values in and of themselves.

As a result, the concept of corporate sustainability has achieved a great deal of attention and there is a growing literature on the topic. Yet, much of our current understanding stems from the manufacturing sector in general.Less attention has so far been paid to the specific organisational challenges which the construction industry faces. This two year project explores the introduction of sustainability strategies into construction firms. The aim is to better understand the challenge of transforming organizational identity, structures and routines in such a way as to incorporate sustainability.To do so, theresearch draws on theories of innovation and strategic change to explore the ongoing development and implementation of sustainable business models. Whereas most research on sustainability in construction so far has focused either on external stakeholder demand or on the problem of individual level attitudes and values, our own research works with a concept of organizational culture as embedded in practice. The research is carried out in two strands. The first takes a firm and industry wide view, whilst the other takes a project specific view.

Mainstreaming sustainability

The Mainstreaming Sustainability project explores variations in firm-level responses to the changing regulatory, policy and market contexts.Research focuses on the ways in which change leaders are working to translate demands for sustainable construction into firm level visions and to incorporate them in organisational structures and practices.The research combines an industry level comparison of changes in corporate vision and identity as evidenced in annual reports over the past ten years with firm level exploration of specific sustainability strategies and their implementation.

The objectives of the study are to:

• Document the main trends in sustainable construction, as evidenced in annual reports and policy documents.
• Explore how sustainable strategies are formulated and implemented.
• Trace the communication of new strategies, visions and corporate images across the firm.
• Identify potential tensions between sustainability vision and routine procedures, incentives and goals.
• Develop a set of practical recommendations for a better integration of sustainability across the firm.

BREEAM in practice

The Strategy for Sustainable Construction (2008) identifies a number of mandated mechanisms which are seen as delivering general goals of environmental and social sustainability.Key amongst these is BREEAM (Building Research Establishment Environmental Assessment Method).This particular assessment method is of interest both for its widespread use within the industry and for its promise to contribute to more integrated decision making.

The research adopts a practice based, socio-technical systems approach.Research focuses on the different actors involved in an assessment process, including clients, general contractors, architects, specialist engineers and assessors.The aim is to document the conduct of the assessment and the range of different understandings and expectations which shape participation in the assessment process.

The research aims help assessors and firms refine their procedures to gain maximum benefit from the process and overcome current confusion and dissatisfaction.It should also help firms make better use of a tool, harnessing it for their own sustainability goals and ensuring its fit with their organizational practices.