BayWa – Focus on building materials

Building a sustainable future
BayWa is an international trading company operating in the fields of energy, agriculture and building materials. In this thematic report, which is the fifth in a sequence of short notes and interviews about BayWa, we explore how the company’s building materials segment is responding to the need for the construction sector to adopt more environmentally responsible practices.  

Construction industry needs to decarbonise

According to the International Energy Agency (IEA), around 37% of global energy- and process-related CO2 emissions are attributable to the construction sector if the entire life cycle of buildings is taken into consideration, not just the energy used in heating, lighting and other operational activities. This means that there need to be radical changes in construction practices if the world is to meet the goal of achieving net zero carbon emissions by 2050, which was agreed at the COP 21 summit in Paris in 2015. Most attention has been focused on reducing operational carbon emissions in existing buildings through the installation of more efficient lighting and improving insulation. However, achieving a net zero built environment will necessitate designing with less material, selecting materials with a lower carbon impact such as wood, reusing materials and designing buildings to be reused or deconstructed.

BayWa is promoting more sustainable construction practices

BayWa is one of the largest building materials traders in Germany, with €1.9bn sales in FY20, so it is well placed to promote the adoption of more sustainable construction practices. It is doing this through involvement in construction projects with development partners that implement novel urban planning concepts such as inter-generational living and demonstrate the use of renewable energy and more efficient insulation. BayWa is also active in the development and launch of innovative, environmentally responsible products such as prefabricated bathrooms made predominantly out of wood, which is classed as a renewable material.

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BayWa is a client of Edison Invesment Research limited 

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