Danish pension funds to develop industry standard for construction sector’s biodiversity impact

The property companies of the Danish pension funds, AP Pension and PensionDanmark, have partnered with the Planetary Responsibility Foundation to establish measurement methods for the impact of construction on biodiversity.

The three partners, which includes AP Ejendomme and PensionDanmark Ejendomme, will focus on impacts in the entire value chain. The goal is to create a common standard for the construction industry.

Realdania has awarded the partners a DKK 1.1m grant to help fund the project, which is being matched by the three organisations.

AP Ejendomme CEO, Peter Olsson, believes that the project will help create a common reference point that could help the entire construction sector move faster in its efforts to reduce the negative impact on biodiversity:

"For us as a client, an industry standard will be a valuable tool in measuring, reducing and communicating our impact on biodiversity. At the same time, I believe that a common model can help to raise both the pace and the level of ambition in the entire construction industry. Voluntary action can go a long way, but I also believe that it will act as an additional catalyst if there are political requirements and frameworks to ensure that we compete on a level playing field,” Olsson said.

Furthermore, PensionDanmark Ejendomme project development director, Mia Manghezi, said: "Incorporating biodiversity into construction is crucial for nature but also for the industry. Many are already well underway, but as an industry we need a common framework if we are to ensure a significant positive impact on biodiversity throughout the value chain, while creating value for our business and members."

Preliminary calculations show that up to 90 per cent of the total biodiversity impact of construction lies in the value chain. Therefore, the construction industry needs concrete measurement methods that can help key players take responsibility and reduce not only their own impact, but also that of their suppliers and partners.

"In the work with biodiversity in construction and urban development, the focus has so far been on the local impact of projects on nature, where developers in many places today are actively working to increase the natural quality of green areas. However, the impact on biodiversity in the value chain from the production of building materials and energy to the operation of the building has been overlooked. This doesn't make sense when the construction industry plays a key role in global biodiversity impacts with high resource consumption," Planetary Responsibility Foundation CEO, Jens Böhme, added.

During the project, the partnership will draw on knowledge and advice from a range of partners including Sweco, Oiko, Concito, Aaen Engineering and Upstream Partners. The partnership expects to be able to present the results within the coming year.



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