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The Push for Greener Construction Is Making the Industry More Diverse

The Push for Greener Construction Is Making the Industry More Diverse


Sustainability has become a must across many industries, but one sector in need of change is construction. The building community has negatively affected the environment with CO2 emissions and energy consumption. Better practices have arrived with renewable energy, recycled materials and more.

The sustainability movement has unintended positive consequences — making the industry more diverse. How do these two factors go hand in hand? Here’s the connection between sustainability and diversity in construction.

1. Women Think More Sustainably

Consider the role of women in construction. Data from the Bureau of Labor Statistics (BLS) show women comprise about 11% of the construction workforce. That number has steadily risen in the past few decades and will likely continue as diversity initiatives become more commonplace.

Construction needs to hire more women if it wants to move toward sustainability. A study from The Oliver Wyman Forum reveals that 75% of women consider environmental impact in their decision-making compared to 64% of men. Another striking revelation is that women are two times more likely than men to view environmental, social and governance (ESG) scores than their male counterparts.

Why are women more environmentally conscious than men? One reason could be the environment they grew up in. The adverse effects of climate change hit harder in places relying on natural resources. Droughts and natural disasters are significant factors that make life much harder. Women see the impact more in these areas because most impoverished people are women.

2. Women Are More Empathetic 

Women are more likely to account for environmental impact in their decisions. In fact, the Oliver Wyman study found women hold less than 25% of jobs in the highest-emitting industries. Why are they more environmentally conscious than men? One reason could be empathy.

A study examined the “reading the mind in the eyes test” (RMET) and compared the results between men and women in 57 countries. Women had a significant on-average advantage in 36 nations. The researchers linked their test results to collectivism instead of prosperity and autonomy, suggesting women are more likely to support the whole rather than self-interests.

Selflessness is a divider between men and women. A 2021 Journal of the Economic Science Association study found that altruism is significantly higher in women than men.

Selflessness can lead to better outcomes for the construction industry in the long term. Women heading companies are more likely to choose sustainable decisions over long-term profits. Thinking green could be a financially sound strategy. For example, adopting solar technology can save $167 billion by reducing negative environmental impacts like pollution. 

3. Diversity Spurs Innovation

Diversity is critical in any industry you encounter. You need variety in background and thought to create the best outcomes for everyone. Diverse teams are the best at innovation because of their experiences. In construction, a varied group is more likely to develop more sustainable projects because they come from a place that emphasizes sustainability. They may have seen the adverse effects of climate change in other areas.

A 2020 study found a correlation between inclusion and innovation. The International Journal of Innovation Science says organizations most benefit from diversity at the unit level. Diverse teams working together produce significant change, which is necessary to improve sustainability as the construction industry evolves.  

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4. Diversity Attracts New Talent

The drive for sustainability is growing consistently. Who are some of the most significant forces behind sustainable changes? It’s the younger generations. Millennials and Generation Z have separated themselves as the buyers in today’s market who strive for eco-friendly practices.

Younger people want sustainability and are likely to implement such practices at work. Attracting this talent is crucial in keeping ideas fresh and aligned with societal needs. Also, consider that some of the best workers are recent graduates who only need a chance to show off their skills. The construction industry is dealing with labor shortages and needs workers like pipefitters, crane operators and others. Diversity opens up the talent pool and can fill the gaps.

How does diversity affect your company’s success in hiring new talent? A study by Glassdoor reveals that inclusion is essential for many job prospects. About 76% of prospective employees say workforce diversity is critical when evaluating offers and deciding where they want to work.

5. Diverse Workforces Retain Employees

You find the best pool of workers possible when considering diversity in hiring. The increase in talent leads to better results for your construction company. How does this factor into retention? An Assumption University study in Thailand found a positive correlation between diversity and employee retention.

The modern workplace in construction and other industries has shifted dramatically. Employees have started to care more about themselves and each other. They want to see higher levels of diversity because it makes them feel more comfortable and breeds new ideas compared to homogenous teams. A study by the Associated General Contractors (AGC) finds nearly two-thirds of employees would leave if their company did not practice diversity. 

6. Diversity Attracts New Customers

Those in their 20s and 30s will likely prioritize sustainability when making significant purchases, like a car or house. Diversity is critical for construction companies as today’s young people occupy a larger share of the housing market and have a greater say.

Sustainability can make a significant difference in construction companies today. You can use green practices to separate your company from others in the region who stick with traditional methods. Eco-friendliness will give you the upper hand in the long run.

Consumers are taking sustainability seriously, and it shows with their dollars. A 2022 study by Oracle finds 70% of people will cease their financial relationship with a brand if they don’t take environmental sustainability seriously. On the other hand, eco-friendliness goes a long way with brand loyalty. Companies demonstrating care for the environment and social issues are more likely to gain customers and investors, and more people will want to work for them.

7. Diversity Reaches Untapped Markets

A common theme among many companies is finding the next big thing. What’s going to take your company to the next level? For some businesses, it’s opening themselves up to new, untapped markets. Diversity is crucial today, but it doesn’t only apply to hiring.

You should also prioritize working with diverse suppliers. Developing relationships with minority-owned businesses create tremendous job opportunities in these communities. Thus, you’re opening up your company to untapped talent that might not have had the chance beforehand. Connecting with minority businesses gives you a better idea of how to serve the community more sustainably.

Making Construction Greener and More Diverse

Sustainability will come into greater focus for consumers and businesses across industries in 2023 and beyond. Construction needs to focus on this as well as diversity. Diversifying your workforce leads to greener practices, benefiting businesses in the long run with a broader range of employees, consumers, and investors.

By Rose Morrison



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Janet Richardson

Janet is an accomplished director and writer at The Renewable Energy Hub. Janet has worked at a senior level at a number of publishing companies and is an authority on renewable energy topics. Janet is passionate about sustainable living and renewable energy solutions, dedicated to promoting eco-friendly practices and creating a vibrant community of eco-conscious individuals and businesses seeking sustainable energy solutions.

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