Sustainable development aims to reduce negative environmental impacts while creating beneficial social and economic impacts. While there has been extensive research on the negative environmental impacts of construction, less work has been done on the social and economic benefits. In developing countries with high levels of unemployment and inequality, it is crucial to understand how beneficial impacts can be created to respond to local challenges. This entry reviews the economic and social benefits that can be created through construction. It shows social and economic sustainability indicators can be developed and specific targets set to achieve improved sustainability. It will be of interest to government officials, developers, contractors, researchers and built environment professionals wishing to understand how beneficial social and economic impacts can be created through construction.
Sustainable development can be defined in terms of approaches that reduce negative environmental impacts while creating beneficial social and economic impacts. The Sustainable Development Goals developed by the UN define desired impacts in terms of 17 goals and sub-targets that countries should achieve by 2030 [1].
However, progress in achieving the SDGs has been poor and current trajectories indicate that many targets will not be achieved [2]. It is therefore important to identify and adopt approaches that more effectively integrate the achievement of the SDGs in industry practices[3][4].
Within the construction sector, environmental impact is addressed by legislation such as Environmental Impact Assessments (EIAs) and green building rating tools such as BREEAM, LEED and CASBEE. These green building rating tools were developed in the UK, USA and Japan and are well established.
However, reviews indicate that some green building rating tools only partially address the SDGs and have a limited focus on social and economic sustainability impacts[5][6][7].
In developing countries, social and economic issues such as unemployment, health and education are important priorities. Developing countries also tend to have large infrastructure backlogs that need to be addressed and the construction of new housing and education and health facilities is likely to continue in the short to medium term[8]. Carrying out these construction projects provides a valuable opportunity to create beneficial social and economic impacts such as local employment and support the achievement of the SDGs.
An analysis of the SDGs indicates that some goals, such as those related to water, energy and cities have direct implications for construction. For others, such as those on poverty and inclusion, the implications are less clear and may be indirect. Implications for construction derived from the SDGs are shown in the table below.
SDG Goal |
Building Construction Implications |
Goal 1. End poverty in all its forms everywhere |
Building construction must provide access to productive resources and work opportunities to enable people to avoid poverty. |
Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture |
Building construction supports improved access to affordable healthy food from reliable and sustainable sources and promotes sustainable agriculture.
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Goal 3. Ensure healthy lives and promote well-being for all at all ages |
Building construction must provide working environments that are healthy and safe to work in. |
Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all |
Building construction must support inclusive, equitable, quality education and promote lifelong learning for all. |
Goal 5. Achieve gender equality and empower all women and girls |
Building construction must promote gender equality and empower women and girls. |
Goal 6. Ensure availability and sustainable management of water and sanitation for all |
Building construction uses sustainable water and sanitation systems on sites and promotes the sustainable management of water and sanitation for all.
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Goal 7. Ensure access to affordable, reliable, sustainable, and modern energy for all. |
Building construction must use sustainable energy sources on site and promote access to affordable reliable, sustainable, modern energy systems.
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Goal 8. Promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all. |
Building construction must promote inclusive and sustainable economic growth including local employment and self-employment opportunities.
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Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. |
Building construction must promote inclusive and sustainable industrialization and innovation.
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Goal 10. Reduce inequality within and among countries |
Building construction must reduce inequality including unequal access to affordable education, health, services and products, accommodation and local employment opportunities. |
Goal 11. Make cities and human settlements inclusive, safe, resilient, and sustainable |
Building construction must promote inclusion, safety, resilience and sustainability.
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Goal 12. Ensure sustainable consumption and production patterns |
Building construction must support sustainable consumption and production patterns such as local access to sustainable products and low ecological footprint food. |
Goal 13. Take urgent action to combat climate change and its impacts. |
Building construction must combat climate change and its impacts. |
Goal 14. Conserve and sustainably use the oceans, seas, and marine resources for sustainable development. |
Building construction must promote processes that conserve and sustainably use the oceans, seas and marine resources for sustainable development.
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Goal 15. Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. |
Building construction must promote the sustainable use of terrestrial ecosystems including the use of sustainably grown materials and the inclusion of planting and the protection of biodiversity on sites. |
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable, and inclusive institutions at all levels. |
Building construction must promote peaceful and inclusive societies for sustainable development including local democratic governance institutions. |
Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development |
Building construction must promote environmentally sound technologies and support partnerships for Sustainable Development. |
Creating beneficial social and economic impacts through construction requires social and economic impacts to be specified as outcomes and planning and investments made to achieve these. This approach can be illustrated through the example below.
From a government’s point of view, marginalization and unemployment have substantial impacts and costs and have to be addressed. Therefore, if construction provides a way of addressing this effectively it is worth pursuing this and making investments that create both beneficial social and economic impacts as well as the asset itself[9].
Examples of construction methods used to create beneficial social and economic impacts are outlined below.
Labour-intensive construction describes construction approaches which pursue opportunities to create employment and work opportunities for people. Thus, building designs, the selection of materials, and construction methods aim to maximize the use of manual methods rather than the use of equipment to create and sustain jobs[10].
Small enterprise development describes approaches in which services and products are procured from small enterprises during construction projects to support and develop these. This can be achieved through procurement processes that require the main, or large contractors, to source goods and services from small enterprises. Alternatively, contracts may be broken down into smaller packages which can be procured from smaller enterprises instead of one large contractor.
Health and safety describes processes that ensure that construction workers are healthy and safe. While health and safety are increasingly addressed in legislation and policy, this is not always carried through into everyday practices on site. In addition, conventional health and safety measures focus on issues such as injuries that may occur on-site. In developing countries, it may be necessary to go beyond this and address conditions that are prevalent locally, such as HIV/AIDS[11].
Education and training describe capacity development activities that are conducted to improve the knowledge and skills of people who work on construction and buildings[12]. These activities aim to ensure that the people receiving them can access further work and self-employment activities after the completion of the work on site.
The selection of materials and products specified in buildings can be used to increase employment in several ways. Materials and products that are produced locally can be specified instead of those imported from another country. This supports the creation of local jobs and businesses[13].
Inclusion refers to a focus on ensuring that benefits from construction, such as employment, can be accessed by everyone. This means that there is an emphasis on ensuring that people such as women, youth and people with disabilities who may be marginalized can access opportunities[14].
The examples show that construction can make substantial beneficial social and economic impacts and support the achievement of the Sustainable Development Goals. Further research on the integration of SDGs into construction processes is recommended. In implementing construction projects that aim to achieve social and economic sustainability benefits, the following recommendations are made:
An important initial step for achieving social and economic beneficial impacts through construction is awareness and training. Planning and a structured approach also need to be in place so that the client, built environment consultants and contractors understand social and economic impact objectives and their role in achieving these[15].
Effective procurement and contract administration processes are required to ensure that social and economic targets are achieved in practice. Targets must be integrated as deliverables in contracts and their achievement tracked[12].
While making sustainable construction targets a contractual commitment helps ensure they are achieved, structured responsive support also helps increase the chances of success. For example, support can be provided to local communities before construction projects start to ensure they are prepared and can benefit optimally from opportunities.
This entry is adapted from the peer-reviewed paper 10.5281/zenodo.13906374