9 in 10 Firms Making Sustainable Building Products are Making Money, Research Finds

A new report shows that about nine in ten firms that manufacture building products generate a significant portion of their revenue from sustainable services and products. This is a remarkable management indicator, especially as the world increases its focus on the importance of eco-friendly and energy-efficient solutions in construction.

Decisions made now about how buildings are constructed and maintained will determine this field’s energy consumption and emissions in the long-term. At the moment, buildings make up more than 30% of energy consumed globally, with the industry being pressured to meet net-zero targets as stipulated in the Paris Agreement.

The report, compiled by Morningstar Sustainalytics, also showed that Europe was leading in the integration of sustainability into the building products industry. The continent has the highest number of firms that generate over 50% of their revenues from sustainable solutions.

The European Union’s regulatory pressures drive this charge, with initiatives like the EU Renovation Wave remaining focused on doubling yearly rates of energy renovation by 2030. This, together with the amended Energy Performance of Buildings Directive, is pushing more firms to adopt practices that are more sustainable.

The report also found that more than 65% of these firms didn’t report how much of their revenue was generated specifically from sustainable solutions. This failure in transparency calls attention to a major issue; regulators and investors often lack clear data to evaluate the actual impact of the sustainability initiatives of these firms.

As the ESG space evolves, firms will be required to provide more consistent and detailed disclosures about revenues related to their sustainability initiatives. In addition to this, the report discussed top-ranking firms on sustainability in the building products space, which included Rockwool and Saint-Gobain.

Rockwool announced recently that in 2023, it generated 77% of its total sales from green solutions. Its stone wool insulation products support resilience against extreme weather conditions while also enhancing energy efficiency.

Saint-Gobain also announced that 73% of its sales were derived from sustainable products. This was primarily driven by a technique that evaluates both product performance and sustainability.

In addition to this, Trane Technologies also revealed that 41% of its revenues were derived from low-emission energy-efficient solutions aligned with the United Nations’ Sustainable Development Goals.

Overall, the industry’s gradual shift toward sustainability continues to align with increasing market demand for eco-friendly solutions and global net-zero goals. As sustainability continues to drive growth in revenue, firms leading this transition may benefit from increased consumer awareness and regulatory incentives.

This data coming out of Europe can serve as an encouragement to various enterprises like Energy and Water Development Corp. (OTCQB: EAWD) that have focused on providing products and services which may not necessarily be in the construction industry but nonetheless hinge on sustainability. The revenue is bound to keep increasing, and growth will be inevitable.

NOTE TO INVESTORS: The latest news and updates relating to Energy and Water Development Corp. (OTCQB: EAWD) are available in the company’s newsroom at https://ibn.fm/EAWD

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