Hannah Smith, GCHU Intern and BA (Hons) Geography student, University of Oxford
As the UK’s urban population continues to grow, which now stands at 57 million, building sustainable new towns is increasingly important. Sustainable supply chain management – considering environmental, social, and economic factors across the entire supply chain, from procurement to end-of-life waste – is crucial to managing this challenge. After completing a scoping review of recent research on supply chains in the construction industry as a part of my GCHU internship, I found that, in the context of the construction industry and new urban development, this task manifests itself as: the implementation of circular economy principles; supply chain localisation, and sustainable procurement. Across all of these aspects, a key theme that emerged throughout the literature is that of innovation. The significance of the UK governments’ New Towns Taskforce, which has an objective to create new and expanded places that drive economic growth and increase the supply of homes in the UK sustainably, highlights the need for innovative methods of sustainable supply chain management.
The circular economy is a system for production and consumption that keeps materials in use, reducing waste and pollution by circulating resources through reuse and recycling. One method of implementing a circular economy drawn out by the literature is industrial symbiosis combined with sustainable supply chain management, building on the concept of economic clusters. This method, particularly suitable for urban and regional scales, is argued to reduce resource use by sharing resources, using waste for secondary raw materials and fostering innovation. The Regional Building Hubs initiative, which aims to coordinate small and medium-sized enterprises with local and regional supply chains, exemplifies the implementation of circular economy principles in building new sustainable settlements. On one hand, these principles can be implemented from a knowledge-sharing and networking angle, developing opportunities for innovation and, on the other hand, from a waste management and recycling angle.
Source: Pixabay
Part of the Regional Building Hubs initiative, or other future sustainable supply chain initiatives, could be the ability to create a physical site where demolition waste can be gathered, processed and sorted, before being reused as a construction material. While over 90% of Construction and Demolition Waste (CDW) can be easily reused or recycled, lack of recycling remains a challenge in many countries worldwide. Recycling a metric ton of CDW instead of sending it to landfill prevents the release of approximately 6.41kg of CO2-eq emissions into the atmosphere. However, there are technological challenges and limitations to CDW recycling. For example, crushed concrete can be embedded into new concrete, but its addition degrades performance, and fresh cement is still required. Furthermore, a case study in China found that one of the critical challenges was the absence of an effective waste tracing system.
The way in which a lack of digital infrastructure remains a challenge in CDW recycling highlights the ways in which digital technologies are playing an increasing role in sustainable supply chain management. Technologies such as AI, big data, and blockchain have the potential to optimise supply chains. However, these technologies do face challenges including lack of data management infrastructure, the regulatory environment of the construction industry and resistance to change.
Source: David McBee
Another area of innovation in sustainable supply chains relevant for new urban developments is the localisation of the supply chain, and the drawing in of local industrial partners for consultation and development of solutions. The New Towns Taskforce aims to build individual settlements of at least 10,000 homes. Considering the scale of these projects, it is clear that consulting local knowledge, and sourcing construction materials and labour more locally, for example within the region, is a necessity. Environmentally, supply chain localisation would allow for greater monitoring of production activities, whilst reducing the distance across which products can be distributed. Also, more recently, the COVID-19 crisis has created an impetus for some businesses to pivot to relying on more localised supply chains . However, localisation has been suggested to come with economic challenges, as the infrastructure required for the setting up of a completely local supply chain involves a high level of initial investment, leading its implementation to be limited and reliant on subsidies and tax reliefs. Therefore, whilst more local supply chains have been highlighted as important in fostering sustainability, there is a potential cost barrier.
Finally, when considering the implementation of sustainable supply chains in new urban developments, it is important to ensure the start of the supply chain remains sustainable, at the procurement level. Outcome-led procurement is increasingly emerging as an important aspect of sustainable procurement, as it is centred around meeting and being adaptable to future demands, a key element of sustainability. Sustainable procurement practices can reduce resource wastage, promote ethical labour practices, stimulate local economies, and lower lifestyle costs.
In conclusion, more sustainable supply chains are becoming increasingly relevant for new urban development, as housing demand outstripping supply in the UK. Therefore, I would argue that the UK’s New Towns Taskforce could, and should, do more to consider how not only the end product, the new towns themselves, but also their supply and construction, are sustainably designed.