Bangko Sentral ng Pilipinas Philippines SFTG Navigator

Construction of new buildings — Contribution to the transition to a Circular Economy

Sector: Construction
Description

The development of construction projects for residential and non-residential buildings by combining financial, technical and physical means with a view to sell the building upon delivery or at a later date, as well as the construction of complete residential or non-residential buildings, on own account for sale or on a free or contract basis.

Scope of Assets

Development and construction of residential and non-residential buildings, including specialized construction activities such as site preparation, electrical installation, plumbing heating and air condition installation, building completion and finishing and others.

Examples of Buildings in this Activity include:

  • Single Residential properties
  • Multi-family Residential Properties/Apartment complexes
  • Government Buildings
  • Healthcare
  • Schools
  • Retail
  • Hospitality
  • Data Centres
  • Transport Terminal
  • Warehouses and Distribution Centres
  • Core and Shell Development
  • Houses of Worship
  • Cultural, Community Recreational properties
PSIC/ISIC code

41100 - Development of building projects (ISIC 41100)

43110 – Demolition (ISIC 4311)

43120 - Site preparation (ISIC 4312)

43210 - Electrical installation (ISIC 4321)

43220 - Plumbing, heating, and air-conditioning installation (ISIC 4322)

43300 - Building completion and finishing (ISIC 4330)

43900 - Other specialized construction activities (ISIC 4390)

Technical Screening Criteria

Substantial contribution criteria

The activity complies with all the following criteria1:

  1. The preparing for re-use or recycling of the non-hazardous construction waste generated on the construction site is at least 90% (by mass in kilogrammes), excluding backfilling and naturally occurring materials.
  2. The use of primary raw material in the construction of the building is minimized through the use of secondary raw materials.
  3. The operator of the activity ensures that the three heaviest material categories used to construct the building, measured by mass in kilogrammes, comply with the following maximum total amounts of primary raw materials used:
    1. for the combined total of concrete2, natural or agglomerated stone, a maximum of 70% of the material come from primary raw material;
    2. for the combined total of brick, tile, ceramic, a maximum of 70% of the material come from primary raw material;
    3. for bio-based materials3, a maximum of 80% of the total material come from primary raw material;
    4. for the combined total of glass, mineral insulation, a maximum of 70% of the total material come from primary raw material;
    5. for non-biobased plastic, a maximum of 50% of the total material come from primary raw material;
    6. for metals, a maximum of 30% of the total material come from primary raw material;
    7. for gypsum, a maximum of 65% of the material come from primary raw material
  4. The above thresholds are calculated by subtracting the secondary raw material from the total amount of each material category used in the works measured by mass in kilogrammes.
    1. Where the information on the recycled content of a construction product is not available, it is to be counted as comprising 100% primary raw material.
    2. In order to respect the Waste Hierarchy and thereby favour re-use over recycling, re-used construction products, including those containing non-waste materials reprocessed on site, are to be counted as comprising zero primary raw material.
  5. Construction designs and techniques support circularity via the incorporation of concepts for design for adaptability and deconstruction.
  6. Cement that has lower clinker-to-cement ratio through the use of Supplementary Cementitious Materials (SCMs) is preferred to high carbon intensive cement.
  7. The use of appropriate personal protective equipment (PPE) is ensured for all personnel involved in the construction site.
Complementary measures and practices

Any of the eligible complementary measures and practices mentioned below can be applied to support transition to circularity:

  1. The assessment of life-cycle Global Warming Potential (GWP) of the building resulting from the construction, for disclosure to investors and clients on demand.
  2. The measures implemented to prevent and control potential environmental pollution, including dust control, odor management, noise control, water pollution prevention, Litter control, hazardous material component and fire prevention.
  3. The measures to upgrade the electrical systems with renewable energy sources and energy efficient systems to accommodate the power requirements of the construction site.
  4. The following Internet of Things (IoT) based measures are eligible:
    • Electronic tools to describe the characteristics of the building as built, including the material and components used, for the purpose of future maintenance, recovery and reuse, for example using ISO 22057:2022 to provide Environmental Product Declarations.
    • Developing, using and maintaining information managing systems including those provided by national tools, such as cadastre or public register to store building information in digital format.
    • Data Analytics: Advanced analytics can be used to identify trends, optimize resource allocation, and optimize recovery operations
    • Mobile apps to integrate the waste supply chain by linking construction facilities to waste collectors and potential buyers/sellers of secondary raw materials.
Exclusionary and ineligible practices

The activity does not use destructive methods that do not allow component reuse, high value material recovery or prior salvage of reusable elements.

Do No Significant Harm (DNSH)
Minimum Social Safeguards (MSS)

Notes

  1. 1. The Philippines have Building for Ecologically Responsive Design Excellence (BERDE ) as the National Voluntary Green Building Rating System by the Philippine government, through the Department of Energy (DOE).
  2. 2. This concerns the material concrete, including its constituent ingredients (for example, aggregates). Any steel reinforcement is excluded since this is a different material which can be accounted for under metals.
  3. 3. Bio-based materials are made using biological resources (animals, plants, micro-organisms and derived biomass, including organic waste). They include conventional bio-based materials made traditionally from biomass (such as wood, cork, natural rubber, paper, textiles, wooden construction materials) and more recently developed materials such as bio-based chemicals or bio-based plastics