Housebuilders cannot ignore mounting concerns about a wide range of environmental, social and economic issues, warns Jeremy King, partner at PricewaterhouseCoopers in the Midlands... Developers could take a greater role in helping to deliver sustainable communities - an aim high on the Government agenda. That's the conclusion of a benchmarking study of the top ten housebuilders by PricewaterhouseCoopers. It revealed that nine out of ten provide at least some information relating to sustainability, there were significant gaps. The ten companies had markedly different levels of sustainability activity and in terms of policies, only one published a sustainability policy, while only two provided evidence of actual engagement with stakeholders. What conclusions should we draw from this information? Perhaps the majority of house builders are focusing on sustainability, but not publicly talking about it. More likely they recognise that sustainability is important, but have not fully implemented necessary processes or controls throughout their business. In terms of sustainability reporting, it seems fair to say the sector has some work to do. Sustainability is about getting the right balance between environmental, social and economic concerns and is an issue that has reached the top of corporate agendas in recent years. In a survey by PricewaterhouseCoopers of almost 1,000 CEOs in 43 countries, 79 per cent said that sustainability is vital to the profitability of any company, while 71 per cent revealed that they would sacrifice short-term profits for long-term shareholder value. As architects of local communities, it is an issue that house builders cannot afford to ignore. Sustainability affects daily activities, from land purchasing decisions, the planning process and discussions with stakeholders, through to the type and quality of the homes and communities built - and, indeed, the long-term impact of these developments after the homes are sold and occupied. However, residential developers face a number of challenges in order to successfully implement sustainable strategies. By committing to delivering a sustainable project, a business is charged with doing the right thing by all of its stakeholders. That includes employees and their families, local communities, wider society and even future generations - not just shareholders. Developers are faced with twin challenges, managing their own business in a sustainable way, while also delivering the desired sustainable communities. The challenge for house builders could seem a little daunting, but as John Prescott points out "sustainable communities need more than just housing". He has highlighted a whole list of other factors that need to be in place for a community to thrive. Education, healthcare provision, job prospects and transportation all have a vital role to play in developing sustainable communities. So what is the role of the housebuilder in influencing the sustainability of developments? The most obvious area is the direct environmental impact of the actual homes, during their construction and use. House building consumes significant quantities of raw materials, particularly aggregates and timber, and developers who take sustainability seriously must be concerned about the way these materials are sourced. Another consideration is the final product. Typically, new homes in the UK are estimated to use three and a half times more energy than Danish or German homes. To gain credibility as a developer these days, stakeholders will expect to see repeated evidence of commitment to sustainability and they will need to be involved in the decision making process. Likewise, developers need to show that they have listened to the external opinions by including stakeholder concerns and corresponding actions in corporate reports. However, all too often this is a one-way dialogue with the company telling stakeholders what decisions have been made. Whatever approach house builders choose to take to engage with the growing societal pressure, it seems clear that the journey is only in its early stages. While sustainability can easily appear as a threat and a recipe for extra burdens, the reality is that it presents real opportunities. Understanding the needs and concerns of all those affected by a development will arm a business with a greater understanding of the locality in which they are working. Forming these kinds of relationships will not only highlight risks for your development, but also present opportunities for your business. A two-way dialogue with stakeholders should also aid the planning process. Developers who understand the concerns and work with the local community are likely to achieve a more rapid and successful planning permission. They will also save money through operational efficiencies and differentiate themselves as sustainable companies. Developers need to credibly put sustainability at the heart of their operation, not as a bolt-on but as the core proposition. The biggest challenge is to change hearts and minds and thus the behaviours of the company. The way in which executives deal with the issue now is likely to have a profound impact on the way their companies perform in the years ahead. | 
