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Driving Performance and
Transparency in Green Building
Products and Materials
Driving Performance and Transparency in Green Building Products and Materials




Driving Performance and Transparency
in Green Building Products and Materials


In just a few short years, the use of environmentally preferable products and
materials has become an essential element in the development and construction of
new commercial and residential building projects. Driven largely by public interest
in minimizing the potential environmental impact of building products, architects
and builders now actively embrace “green” initiatives, such as the new International
Green Construction Code (IgCC™) and the Leadership in Energy and Environmental
Design (LEED®) program developed by the U.S. Green Building Council (USGBC).
Indeed, according to a 2010 UL survey, architects, builders and contractors report that
a significant number of projects they undertake have clear sustainability goals that
require environmentally preferable products.

However, questions remain among manufacturers and buyers about just how to
evaluate and compare the lifecycle-based environmental profiles of similar building
products and materials. For example, what is the significance of a product bearing
an “eco-label”? What are the differences between various types of product eco-
certifications? What mechanisms exist to support comparisons between similar
products? And, what steps can manufacturers take to bring environmentally preferable
products to market as efficiently and as cost effectively as possible?

Each of these mechanisms, from eco-labels and environmental product certifications
to lifecycle assessments (LCAs) and environmental product declarations (EPDs), is
an important part of a larger “toolkit.” Collectively, these tools provide information
regarding the total environmental impact of products, as well as their environmental
performance, and offer an objective means of comparing similar products. Ultimately,
these mechanisms enable buyers to make more informed decisions about the products
they purchase, spurring further advances in product sustainability. Depending on their
objectives, manufacturers can use one or several of these tools in combination to meet
current and future sustainability expectations of buyers.

This UL white paper provides an overview of the various ways in which building
product manufacturers can demonstrate compliance with green building certification
programs and codes. The paper begins by reviewing current and projected trends in
the demand for sustainable buildings and building products, as well as the current
certification programs and building codes regarding green construction. The paper
then discusses the various tools intended to aid in the evaluation and selection of


page 2
Driving Performance and Transparency in Green Building Products and Materials




environmentally preferable products,            construction revenue since 2007, when         A separate study from McGraw-Hill
such as environmental product                   the top 100 green contractors generated       Construction projects a five-fold increase
certifications, LCAs and EPDs, as well as       just $22.8 billion from green projects2.      in revenue generated from green
the specific functions of each. The white                                                     residential construction, growing from $17
                                                Equally significant, green construction
paper concludes with some thoughts                                                            billion in 2011 to between $87-114 billion
                                                projects represent an increasingly
about the value of both performance                                                           annually by 20166. This anticipated pace
                                                important source of revenue for building
and transparency metrics in achieving                                                         of future growth in green construction
                                                contractors. For example, New York-based
environmental leadership.                                                                     clearly provides significant economic
                                                Turner Construction reports that 55% of
                                                                                              opportunities for manufacturers of
                                                its 2009 construction revenue resulted
Industry Trends in Sustainable                                                                sustainable building products and
                                                from green projects, up from just 15% of
Buildings and Building Products                                                               materials.
                                                construction revenues in 20063. Other
The U.S. Department of Energy’s Energy          construction firms report similar results.    An Overview of Green
Information Administration has projected
                                                In addition to generating more revenue        Building Certification Programs
that the construction and operation of                                                        and Codes
                                                from green building projects, architects
buildings now accounts for about 40% of
                                                and builders report increased client
domestic energy consumption and almost                                                        At present, green construction projects
                                                interest in construction projects with
75% of U.S. electricity consumption1. By                                                      are largely defined by compliance with
                                                clear sustainability goals that require
choosing environmentally preferable                                                           the provisions of voluntary green building
                                                the use of environmentally preferable
building products and materials,                                                              certification programs and by mandatory
                                                products. Research conducted on behalf
commercial and residential developers                                                         building codes. Here’s a brief overview
                                                of UL Environment in 2009 indicated
and builders can reduce the use of                                                            of the most important green building
                                                that more than half of construction
energy resources required to produce                                                          programs and codes currently applicable
                                                projects then in development had
building products and materials, and                                                          to building design, construction and
                                                sustainability goals, with more than 75%
save on energy consumption during                                                             maintenance.
                                                of projects designed with environmental
construction and over the span of               sustainability in mind. The survey also       LEED Green Building Rating System
a building’s useful life. Not only do           found that the impetus for sustainable
these products and materials address                                                          Initially developed with the active
                                                construction projects was likely the
the expectations of environmentally                                                           participation of the USGBC in the
                                                client identifying sustainability goals
                                                                                              mid/late 1990s, the LEED certification
conscious buyers, but their use can             for his or her project, or an architect or
                                                                                              program for the design, construction and
actually result in tangible financial           builder recommending environmentally
                                                                                              operation of environmentally preferable
benefits for developers and builders.           preferable building products and
                                                                                              buildings is currently the most widely
Because of these and other advantages,          materials4.
                                                                                              used framework for assessing green
it’s not surprising that green construction     There are also clear indications of           building projects. Beginning with a single
is on the rise. According to Engineering        continued strong growth in green              standard addressing new construction,
News-Record, the top 100 green                  construction. For example, industry           the LEED program has evolved over
contractors in the U.S. reported revenue        research firm IBISWorld projects that         time to include rating systems and
of $44.1 billion in 2010 from building          revenue from green and sustainable            certifications for new construction and
projects actively seeking certification for     construction projects will increase an        major renovations, existing building
compliance with sustainable design and          average of 23% annually for the next          operations and maintenance, commercial
construction standards. This represents         five years, growing from $87 billion in       interiors, retail spaces, schools, hospitals,
a nearly 100% increase in green                 2011 to more than $245 billion by 2016 .  5   neighborhood developments, and


page 3
Driving Performance and Transparency in Green Building Products and Materials




residential structures. The USGBC                The IgCC can be used for new and existing     accredited as a standards development
estimates that nearly 9 billion square feet      buildings, including high-rise residential    organization by ANSI. A Green Globes
of building space falls under one or more        buildings. However, as a model code,          ANSI standard was published in 2010. The
LEED rating systems, with an additional          the IgCC must be adopted by governing         Green Globe system is applicable to both
1.6 million square feet certified every day 7.   jurisdictions and embedded in state           new and existing buildings.
                                                 and local building codes before its
The current LEED rating systems use a                                                          Living Building Challenge™
                                                 provisions become enforceable under
100-point system to determine whether a
                                                 law. In implementing the IgCC, governing      Operating under the International Living
building project qualifies for certification.
                                                 jurisdictions can modify certain provisions   Building Institute (LBI), the Living Building
Points are awarded in each of the
                                                 to address specific local conditions or       Challenge certifies the development
following six categories:
                                                 enhanced performance requirements             of buildings, neighborhoods, villages/
    1.	 Sustainable sites
                                                 through the addition of “jurisdictional       campuses and cities. It evaluates a
    2.	Water efficiency                          requirements.”                                project’s performance against seven
                                                                                               separate metrics, including site, water,
    3.	Energy and atmosphere                     California’s Green
                                                                                               energy, health, materials, equity and
    4.	Materials and resources                   Building Standards Code
                                                                                               beauty. The Living Building Challenge
    5.	Indoor environmental quality              In terms of building codes, the 2010          requires the use of a third-party auditor
                                                 California Green Building Standards           responsible for reviewing relevant
    6.	Innovation in design
                                                 Code (also known as CALGreen) came            project documents and conducting
A total of 40 points is currently required       into effect on Jan. 1, 2011, and addresses    an onsite verification.
to achieve the minimum certification             green building design and construction
                                                                                               Other Actions
level. Silver, gold and platinum                 for new residential and non-residential
certification levels are available for           buildings. The provisions of the California   At the federal level, it is anticipated that
projects that have earned greater                Green Building Standards Code have            the U.S. General Services Administration
point totals.                                    already influenced requirements in            (GSA) will incorporate environmental
                                                 other construction codes, such as             product certifications as a factor in
International Green Construction
                                                 the International Green Construction          government purchasing decisions in 2012
Code (IgCC)
                                                 Code (IgCC). It is expected that other        or 2013. This action is based on Executive
The 2012 IgCC is the product of a                jurisdictions will look to California’s       Order 135148, issued by President Obama
collaborative effort between the                 example when formulating their own            in October 2009 that requires U.S. federal
International Code Council, the American         green building requirements.                  agencies to “leverage federal purchasing
Institute of Architects and ASTM                                                               power to promote environmentally-
                                                 Green Globes
International. IgCC is a consensus-based                                                       responsible products and technologies.”9
model code that creates a framework              Used in the U.S. and Canada, the Green        With annual expenditures approaching
for other existing international codes,          Globes online assessment and rating           nearly $6 trillion, federal buying
including the International Energy               system has its origins in the Building        requirements are also likely to speed
Conservation Code and ICC 700, the               Research Establishment’s Environmental        acceptance of these compliance
National Green Building Standard. As             Assessment Method (BREEAM). The               mechanisms by private industry.
such, IgCC incorporates sustainability           Green Globes system has operated in
measures addressing every phase of a             the U.S. since 2004 under the oversight
building project, from design through            of the Green Building Initiative (GBI), the
construction and occupancy.                      first green building organization to be



page 4
Driving Performance and Transparency in Green Building Products and Materials




Mechanisms for Demonstrating                      •  Lifecycle Assessment (LCA)—                 pertinent environmental and
Product Environmental                               An LCA evaluates a product’s                 health-related impacts. Because
                                                    environmental impact throughout              the information contained in EPDs
Performance
                                                    its various lifecycle stages, from           is based on a set of common rules
Within the context of green building                material and component sourcing              (the critical difference between
certification programs and codes                    though final disposal or recycling.          an EPD and an LCA), EPDs enable
noted above, there are a number of                  It provides a comprehensive picture          buyers to make more informed
mechanisms available to support                     of the amount of energy, water               purchasing decisions across a
claims regarding the environmental                  and materials consumed in the                given product category.
performance of building products and                production and use of a product.
materials. These mechanisms vary in                 As such, an LCA is appropriate         Types of Certification
complexity, ranging from an assessment              when used to assess a product’s
                                                                                           In addition to the various mechanisms
of a single aspect of a product to a more           environmental impact in support
                                                                                           available for demonstrating a product’s
comprehensive evaluation of a product               of a company’s efforts to improve
                                                                                           environmental attributes and impacts,
throughout its entire lifecycle. Following          operations or meet internal goals.
                                                                                           confirmation of environmental
is a brief summary of the various types             However, because it is difficult to
                                                                                           performance claims can be achieved
of mechanisms for demonstrating a                   compare multiple products within
                                                                                           through different levels of certification,
product’s environmental attributes                  a given category, an LCA is not
                                                                                           as follows:
and impacts.                                        typically used to communicate
                                                    these improvements publicly.               •  First-party certification—
    •  Environmental Product
                                                                                                 Also known as self-certification,
      Certification —An environmental             •  Environmental Product
                                                                                                 first-party certification is based
      product certification enables                 Declaration (EPD)—An EPD is a
                                                                                                 wholly on a declaration by a
      buyers to identify products that              comprehensive, verified disclosure
                                                                                                 manufacturer that a product
      meet their specific environmental             of a product’s lifecycle-based
                                                                                                 meets certain environmental
      and/or sustainability goals.                  environmental impact. It reports
                                                                                                 performance requirements. As
      An environmental product                      the results of a product’s lifecycle
                                                                                                 such, first-party certifications are
      certification is typically based on           assessment (LCA) according to a
                                                                                                 considered the least credible, and
      an environmental performance                  set of international standards and
                                                                                                 do not meet the requirements of
      standard that sets metrics for                product category rules (PCRs), and
                                                                                                 buyers who are seeking products
      one or more criteria, such as                 includes other information relevant
                                                                                                 with independently verified
      energy reduction, waste diversion,            to a product’s environmental
                                                                                                 environmental performance claims.
      recyclability, use of salvaged                profile. An EPD will usually include
      materials, and conservation                   information on a product’s                 •  Second-party certification—
      of natural resources. An                      carbon footprint, ozone depletion,           In some cases, industry, trade
      environmental product certification           acidification of land and water,             or special interest groups are
      indicates that a product has                  eutrophication (an impact of                 directly involved in the creation
      undergone independent testing,                water pollution), photochemical              of performance standards, in
      auditing or both and complies                 ozone creation, and depletion of             the operation of a certification
      with that standard.                           abiotic resources, as well as other          program, or in the verification




page 5
Driving Performance and Transparency in Green Building Products and Materials




      of environmental performance             Standardization (ISO) has created a series          and declarations present objective,
      claims on behalf of their members.       of guidelines for labels and declarations           quantifiable, lifecycle-based
      While commonly confused with             regarding product environmental claims.             environmental information about
      third-party certifications, these        ISO standards categorize eco-labels                 a product in a consistent manner.
      types are actually second-party          and declarations into one of the three              Also known as Environmental
      certifications.                          following types:                                    Product Declarations (EPDs),
                                                   •  Type 1 (ISO 14024: 1999,                     Type 3 ecolabels are based on
    •  Third-party certification—
                                                     Environmental labels and                      product category rules set by
      Third-party certification is
                                                     declarations—Type 1 environmental             an independent body, known
      conducted by an unbiased,
                                                     labeling—Principles and                       as a program operator. In some
      independent body whose only
                                                                                                   cases, environmental information
      connection with a manufacturer                 procedures)—Type 1 labels and
                                                                                                   presented in Type 3 declarations
      seeking certification is the fees              declarations affirm compliance
                                                                                                   must be independently verified by
      paid by that manufacturer for                  with pre-determined, multi-
                                                                                                   the program operator.
      assessment and verification                    attribute, lifecycle-based
      services. Third-party certification            environmental performance
                                                                                            The LEED Material Disclosure
      warrants that all aspects of the               requirements for products within
      certification program, from
                                                                                            and Assessment Pilot Credit
                                                     the same category. However,
      standard development, operations               products bearing Type 1 eco-labels     In 2012, the USGBC modified the
      and verification of environmental              may offer different levels of          LEED certification credit structure
      performance claims, are conducted              environmental performance in           to award pilot credits for the use of
      independently and free of any                  areas outside the scope of the label   environmentally preferable building
      conflicts of interest.                         or declaration.                        products and materials that have been
                                                                                            certified by a third-party. The LEED
Types of Eco-Labels                                •  Type 2 (ISO 14021: 1999,
                                                                                            Material Disclosure and Assessment
                                                     Environmental labels and
and Declarations                                                                            pilot credit, known as Pilot Credit 61, was
                                                     declarations—Self-declared
                                                                                            developed to increase the use of building
An eco-label or declaration signifies a              environmental claims Type 2            products and materials “with life cycles,
product’s compliance with environmental              environmental labeling)—Type           ingredients, and attributes understood
performance requirements and                         2 labels and declarations reflect      and optimized to improve overall
standards. According to some estimates,              environmental performance claims       environmental, economic and social
there are over 430 different eco-labels              made by a product manufacturer.        performance.”11 The pilot credit applies to
in use by 25 industry sectors in 246                 The performance criteria have          the use of structural and non-structural
countries around the world10. As such,               not been defined or accepted, or       building products and materials under all
there is understandable confusion about              independently verified.                LEED rating systems, with the exception
the meaning and importance of different                                                     of residential construction.
                                                   •  Type 3 (ISO 14025-2006,
types of eco-labels.
                                                     Environmental labels and               Pilot Credit 61 calls for the use of certified
To bring clarity to the significance                 declarations—Type 3 environmental      building products and materials that have
of various types of eco-labels, the                  declarations—Principles and            a total weighted value of at least 20% of
International Organization for                       procedures)—Type 3 eco-labels          all non-structural materials and products




page 6
Driving Performance and Transparency in Green Building Products and Materials




used in a project. Building products and         Achieving Performance and                     whether a product is, in fact, “greener”
materials qualify for credit in one of the       Transparency in Environmental                 than a traditional product, and
following three ways:                                                                          often considers health and social
                                                 Certifications
    1.	 Having a publicly available LCA                                                        impacts as well as environmental
       that has been independently               As the LEED pilot credit program              impacts of products. At the same
       peer reviewed in accordance               illustrates, certifying the environmental     time, multi-attribute standards and
       to ISO 14044                              performance of building products              certifications simply denote that a

    2.	Having a third-party certified,           and materials can proceed along               product is more preferable than

       industry-wide EPD or                      one of several paths. A third-party           another from a sustainability
                                                 certification based on compliance with        perspective, without indicating the
    3.	Having a third-party certified,
                                                 an environmental performance standard         reason that it is more preferable. This
       product-specific EPD
                                                 indicates that a product meets one or         approach can prove challenging to
                                                 more sustainability criteria, such as         those looking for more transparent
Equally important, the method selected
                                                 energy reduction, recyclability or            information about a product’s
can increase or decrease an individual
                                                 resource conservation. Certification          environmental, social or health
product’s contribution to the overall
                                                 based on an assessment of a product’s         performance against specific parameters.
weighted value. For example, the
weight of products with a certified,             overall environmental impact                  Certification of an EPD warrants that the
industry-wide EPD is calculated at               empowers purchasers to make                   environmental impact information
cost, while the weight of products               more informed decisions.                      presented has been reviewed and
with a certified, product-specific EPD                                                         validated by a credible third-party. Based
                                                 Of course, each available certification
is calculated at two times their cost.                                                         on life-cycle assessment and thinking, an
                                                 path offers its own unique advantages
The weight of products with a product-                                                         EPD essentially tells a product’s overall
                                                 and constraints. Certification to product
specific LCA is calculated at half their cost.                                                 environmental story, enabling purchasers
                                                 performance standards that address
                                                                                               to make more informed decisions about
                                                 a single attribute, e.g., lower levels of
LEED Pilot Credit 61 elevates the                                                              the products they buy. However, as noted
                                                 volatile organic compound emissions,
importance of using building products                                                          earlier, EPDs do not indicate whether a
                                                 or increased use of recycled content, etc.,
and materials that are accompanied                                                             product is environmentally preferable
                                                 is valuable for demonstrating leadership
by detailed information about their                                                            and, as such, should not generally be
                                                 in a specific environmental performance
environmental profile, making them                                                             used to evaluate a product against an
                                                 category. At the same time, however,
more a more attractive choice for                                                              environmental performance certification.
                                                 single product attribute certifications
architects, developers and builders. The
                                                 do not offer an overall view of a             Given the unique advantages and
pilot credit program’s weighted value
                                                 product’s environmental performance.          constraints of each of these certification
calculation based on product certification
                                                                                               options, manufacturers of building
type also allows manufacturers to select         Certification to product performance          products and materials should view them
a certification path that represents a           standards based on multiple attributes        as complementary and not competitive.
balance between a product’s economic             address a variety of important impacts        When used in conjunction with EPDs,
value and its contribution to the overall        within a given product category. It can       single-attribute and multi-attribute
environmental performance of a project.          provide an overall assessment of              product certifications provide




page 7
Driving Performance and Transparency in Green Building Products and Materials




performance metrics that assess whether a product is environmentally preferable while
also disclosing its lifecycle-based impacts. Together, these certification options provide
buyers with objective, comparable environmental performance data to facilitate
an informed product selection process. This allows buyers to more easily identify
environmentally preferable products, thereby driving environmental performance in
sustainable building efforts.

Conclusion
Today, green construction represents a substantial sector within the construction
marketplace, impacting both commercial and residential construction projects. Even as
the overall construction market experiences nominal growth, economic indicators point
to robust increases in green construction between now and 2016. Architects, developers
and builders are reporting increased requests for environmentally sustainable
construction projects, and are frequently specifying building products and materials
that are environmentally preferable.

Green building certification programs are recognizing the importance of sustainable
products and materials in reducing a building’s overall environmental footprint. This
trend is perhaps best exemplified by the recently introduced LEED Material Disclosure
and Assessment Credit that offers credits for third-party certified building products
and materials. Attention to the use of sustainable building products can be expected to
increase, as the aggregate impact of building products and materials represents a larger
proportion of a building’s overall environmental footprint.

These market dynamics provide important opportunities for manufacturers of
third-party certified building products and materials. Certifications of a product’s
environmental performance that are complemented by a third-party certified disclosure
of its environmental lifecycle impacts equip manufacturers with an unrivaled tool
for marketplace differentiation. Moreover, these certifications provide buyers with
assurances of a product’s environmental preferability, as well as a manufacturer’s
commitment to support sustainable building practices.

For further information about UL’s environmental product declaration and certification
programs, please contact environment@ul.com.




page 8
Driving Performance and Transparency in Green Building Products and Materials




1
    “Annual Energy Outlook 2011, with Projections to 2035,” U.S. Energy Information Administration, U.S. Department of Energy. Apr. 2011.
     Web. 31 Mar. 2012. http://www.eia.gov/forecasts/aeo/pdf/0383(2011).pdf
2
    “The Top 100 Green Contractors, 2011,” Engineering News-Record. 19 Sep. 2011. Web. 31 Mar. 2012.
     http://enr.construction.com/toplists/greencontractors/001-100.asp
3
    “Green Building Market Barometer, 2010” Turner Construction. Undated. Web. 31 Mar. 2012.
     http://www.turnerconstruction.com/content/files/Green%20Market%20Barometer%202010.pdf
4
    “Architects and Builders Study,” survey of 203 architects, builders and contractors prepared for UL Environment by
     Slack Barshinger & Partners, Inc. 13 Jan. 2010.
5
    “Green & Sustainable Building Construction in the U.S.: Market Research Report,” IBIS World. Dec. 2011.Summarized in “Green
     construction boom predicted for at least the next five years,” Retail Design & Construction Today. 7 Dec. 2011. Web. 31 Mar. 2012
     http://www.rdctoday.com/MasterArticlePage/ArticleView/tabid/920/ArticleId/5793/Green-construction-boom-predicted-for-at-least-
     the-next-five-years.aspx
6
    “Green Home Builders and Remodelers Study,” McGraw-Hill Construction. Feb. 2012. Summarized in “Green Homes Market Expected to
     Increase Five-Fold by 2016,” McGraw-Hill Construction press release. Web. 31 Mar. 2012.
     http://www.construction.com/about-us/press/green-homes-market-expected-to-increase-five-fold-by-2016.asp
7
    “What LEED Is,” U.S. Green Building Council. Web. 31 Mar. 2012. http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988
8
    “Executive Order: Federal Leadership in Environmental, Energy, and Economic Performance,” The White House. Oct. 2009. Web. 10 Sep.
     2011. http://www.whitehouse.gov/assets/documents/2009fedleader_eo_rel.pdf
9
    “Executive Order 13514: Sustainability and Greenhouse Gas Emissions Reduction,” Congressional Research Service. Dec. 2009. Web. 20
     Sep. 2011. http://www.cnie.org/NLE/CRSreports/10Jan/R40974.pdf
10. “Ecolabel Index,” Ecolabel Index Advisory Services. Web. 2 Apr. 2012. http://www.ecolabelindex.com/
11. “Pilot Credit 61: Material Disclosure and Assessment,” LEED Pilot Credit Library, U.S. Green Building Council. Mar. 2012. Web. 3 May 2012.
    http://www.usgbc.org/ShowFile.aspx?DocumentID=18547


UL and the UL logo are trademarks of UL LLC © 2012. No part of this document may be copied or distributed without the prior written
consent of UL LLC 2012.




page 9

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Driving Performance and Transparency in Green Building Products and Materials - UL Environment

  • 1. Driving Performance and Transparency in Green Building Products and Materials
  • 2. Driving Performance and Transparency in Green Building Products and Materials Driving Performance and Transparency in Green Building Products and Materials In just a few short years, the use of environmentally preferable products and materials has become an essential element in the development and construction of new commercial and residential building projects. Driven largely by public interest in minimizing the potential environmental impact of building products, architects and builders now actively embrace “green” initiatives, such as the new International Green Construction Code (IgCC™) and the Leadership in Energy and Environmental Design (LEED®) program developed by the U.S. Green Building Council (USGBC). Indeed, according to a 2010 UL survey, architects, builders and contractors report that a significant number of projects they undertake have clear sustainability goals that require environmentally preferable products. However, questions remain among manufacturers and buyers about just how to evaluate and compare the lifecycle-based environmental profiles of similar building products and materials. For example, what is the significance of a product bearing an “eco-label”? What are the differences between various types of product eco- certifications? What mechanisms exist to support comparisons between similar products? And, what steps can manufacturers take to bring environmentally preferable products to market as efficiently and as cost effectively as possible? Each of these mechanisms, from eco-labels and environmental product certifications to lifecycle assessments (LCAs) and environmental product declarations (EPDs), is an important part of a larger “toolkit.” Collectively, these tools provide information regarding the total environmental impact of products, as well as their environmental performance, and offer an objective means of comparing similar products. Ultimately, these mechanisms enable buyers to make more informed decisions about the products they purchase, spurring further advances in product sustainability. Depending on their objectives, manufacturers can use one or several of these tools in combination to meet current and future sustainability expectations of buyers. This UL white paper provides an overview of the various ways in which building product manufacturers can demonstrate compliance with green building certification programs and codes. The paper begins by reviewing current and projected trends in the demand for sustainable buildings and building products, as well as the current certification programs and building codes regarding green construction. The paper then discusses the various tools intended to aid in the evaluation and selection of page 2
  • 3. Driving Performance and Transparency in Green Building Products and Materials environmentally preferable products, construction revenue since 2007, when A separate study from McGraw-Hill such as environmental product the top 100 green contractors generated Construction projects a five-fold increase certifications, LCAs and EPDs, as well as just $22.8 billion from green projects2. in revenue generated from green the specific functions of each. The white residential construction, growing from $17 Equally significant, green construction paper concludes with some thoughts billion in 2011 to between $87-114 billion projects represent an increasingly about the value of both performance annually by 20166. This anticipated pace important source of revenue for building and transparency metrics in achieving of future growth in green construction contractors. For example, New York-based environmental leadership. clearly provides significant economic Turner Construction reports that 55% of opportunities for manufacturers of its 2009 construction revenue resulted Industry Trends in Sustainable sustainable building products and from green projects, up from just 15% of Buildings and Building Products materials. construction revenues in 20063. Other The U.S. Department of Energy’s Energy construction firms report similar results. An Overview of Green Information Administration has projected In addition to generating more revenue Building Certification Programs that the construction and operation of and Codes from green building projects, architects buildings now accounts for about 40% of and builders report increased client domestic energy consumption and almost At present, green construction projects interest in construction projects with 75% of U.S. electricity consumption1. By are largely defined by compliance with clear sustainability goals that require choosing environmentally preferable the provisions of voluntary green building the use of environmentally preferable building products and materials, certification programs and by mandatory products. Research conducted on behalf commercial and residential developers building codes. Here’s a brief overview of UL Environment in 2009 indicated and builders can reduce the use of of the most important green building that more than half of construction energy resources required to produce programs and codes currently applicable projects then in development had building products and materials, and to building design, construction and sustainability goals, with more than 75% save on energy consumption during maintenance. of projects designed with environmental construction and over the span of sustainability in mind. The survey also LEED Green Building Rating System a building’s useful life. Not only do found that the impetus for sustainable these products and materials address Initially developed with the active construction projects was likely the the expectations of environmentally participation of the USGBC in the client identifying sustainability goals mid/late 1990s, the LEED certification conscious buyers, but their use can for his or her project, or an architect or program for the design, construction and actually result in tangible financial builder recommending environmentally operation of environmentally preferable benefits for developers and builders. preferable building products and buildings is currently the most widely Because of these and other advantages, materials4. used framework for assessing green it’s not surprising that green construction There are also clear indications of building projects. Beginning with a single is on the rise. According to Engineering continued strong growth in green standard addressing new construction, News-Record, the top 100 green construction. For example, industry the LEED program has evolved over contractors in the U.S. reported revenue research firm IBISWorld projects that time to include rating systems and of $44.1 billion in 2010 from building revenue from green and sustainable certifications for new construction and projects actively seeking certification for construction projects will increase an major renovations, existing building compliance with sustainable design and average of 23% annually for the next operations and maintenance, commercial construction standards. This represents five years, growing from $87 billion in interiors, retail spaces, schools, hospitals, a nearly 100% increase in green 2011 to more than $245 billion by 2016 . 5 neighborhood developments, and page 3
  • 4. Driving Performance and Transparency in Green Building Products and Materials residential structures. The USGBC The IgCC can be used for new and existing accredited as a standards development estimates that nearly 9 billion square feet buildings, including high-rise residential organization by ANSI. A Green Globes of building space falls under one or more buildings. However, as a model code, ANSI standard was published in 2010. The LEED rating systems, with an additional the IgCC must be adopted by governing Green Globe system is applicable to both 1.6 million square feet certified every day 7. jurisdictions and embedded in state new and existing buildings. and local building codes before its The current LEED rating systems use a Living Building Challenge™ provisions become enforceable under 100-point system to determine whether a law. In implementing the IgCC, governing Operating under the International Living building project qualifies for certification. jurisdictions can modify certain provisions Building Institute (LBI), the Living Building Points are awarded in each of the to address specific local conditions or Challenge certifies the development following six categories: enhanced performance requirements of buildings, neighborhoods, villages/ 1. Sustainable sites through the addition of “jurisdictional campuses and cities. It evaluates a 2. Water efficiency requirements.” project’s performance against seven separate metrics, including site, water, 3. Energy and atmosphere California’s Green energy, health, materials, equity and 4. Materials and resources Building Standards Code beauty. The Living Building Challenge 5. Indoor environmental quality In terms of building codes, the 2010 requires the use of a third-party auditor California Green Building Standards responsible for reviewing relevant 6. Innovation in design Code (also known as CALGreen) came project documents and conducting A total of 40 points is currently required into effect on Jan. 1, 2011, and addresses an onsite verification. to achieve the minimum certification green building design and construction Other Actions level. Silver, gold and platinum for new residential and non-residential certification levels are available for buildings. The provisions of the California At the federal level, it is anticipated that projects that have earned greater Green Building Standards Code have the U.S. General Services Administration point totals. already influenced requirements in (GSA) will incorporate environmental other construction codes, such as product certifications as a factor in International Green Construction the International Green Construction government purchasing decisions in 2012 Code (IgCC) Code (IgCC). It is expected that other or 2013. This action is based on Executive The 2012 IgCC is the product of a jurisdictions will look to California’s Order 135148, issued by President Obama collaborative effort between the example when formulating their own in October 2009 that requires U.S. federal International Code Council, the American green building requirements. agencies to “leverage federal purchasing Institute of Architects and ASTM power to promote environmentally- Green Globes International. IgCC is a consensus-based responsible products and technologies.”9 model code that creates a framework Used in the U.S. and Canada, the Green With annual expenditures approaching for other existing international codes, Globes online assessment and rating nearly $6 trillion, federal buying including the International Energy system has its origins in the Building requirements are also likely to speed Conservation Code and ICC 700, the Research Establishment’s Environmental acceptance of these compliance National Green Building Standard. As Assessment Method (BREEAM). The mechanisms by private industry. such, IgCC incorporates sustainability Green Globes system has operated in measures addressing every phase of a the U.S. since 2004 under the oversight building project, from design through of the Green Building Initiative (GBI), the construction and occupancy. first green building organization to be page 4
  • 5. Driving Performance and Transparency in Green Building Products and Materials Mechanisms for Demonstrating •  Lifecycle Assessment (LCA)— pertinent environmental and Product Environmental An LCA evaluates a product’s health-related impacts. Because environmental impact throughout the information contained in EPDs Performance its various lifecycle stages, from is based on a set of common rules Within the context of green building material and component sourcing (the critical difference between certification programs and codes though final disposal or recycling. an EPD and an LCA), EPDs enable noted above, there are a number of It provides a comprehensive picture buyers to make more informed mechanisms available to support of the amount of energy, water purchasing decisions across a claims regarding the environmental and materials consumed in the given product category. performance of building products and production and use of a product. materials. These mechanisms vary in As such, an LCA is appropriate Types of Certification complexity, ranging from an assessment when used to assess a product’s In addition to the various mechanisms of a single aspect of a product to a more environmental impact in support available for demonstrating a product’s comprehensive evaluation of a product of a company’s efforts to improve environmental attributes and impacts, throughout its entire lifecycle. Following operations or meet internal goals. confirmation of environmental is a brief summary of the various types However, because it is difficult to performance claims can be achieved of mechanisms for demonstrating a compare multiple products within through different levels of certification, product’s environmental attributes a given category, an LCA is not as follows: and impacts. typically used to communicate these improvements publicly. •  First-party certification— •  Environmental Product Also known as self-certification, Certification —An environmental •  Environmental Product first-party certification is based product certification enables Declaration (EPD)—An EPD is a wholly on a declaration by a buyers to identify products that comprehensive, verified disclosure manufacturer that a product meet their specific environmental of a product’s lifecycle-based meets certain environmental and/or sustainability goals. environmental impact. It reports performance requirements. As An environmental product the results of a product’s lifecycle such, first-party certifications are certification is typically based on assessment (LCA) according to a considered the least credible, and an environmental performance set of international standards and do not meet the requirements of standard that sets metrics for product category rules (PCRs), and buyers who are seeking products one or more criteria, such as includes other information relevant with independently verified energy reduction, waste diversion, to a product’s environmental environmental performance claims. recyclability, use of salvaged profile. An EPD will usually include materials, and conservation information on a product’s •  Second-party certification— of natural resources. An carbon footprint, ozone depletion, In some cases, industry, trade environmental product certification acidification of land and water, or special interest groups are indicates that a product has eutrophication (an impact of directly involved in the creation undergone independent testing, water pollution), photochemical of performance standards, in auditing or both and complies ozone creation, and depletion of the operation of a certification with that standard. abiotic resources, as well as other program, or in the verification page 5
  • 6. Driving Performance and Transparency in Green Building Products and Materials of environmental performance Standardization (ISO) has created a series and declarations present objective, claims on behalf of their members. of guidelines for labels and declarations quantifiable, lifecycle-based While commonly confused with regarding product environmental claims. environmental information about third-party certifications, these ISO standards categorize eco-labels a product in a consistent manner. types are actually second-party and declarations into one of the three Also known as Environmental certifications. following types: Product Declarations (EPDs), •  Type 1 (ISO 14024: 1999, Type 3 ecolabels are based on •  Third-party certification— Environmental labels and product category rules set by Third-party certification is declarations—Type 1 environmental an independent body, known conducted by an unbiased, labeling—Principles and as a program operator. In some independent body whose only cases, environmental information connection with a manufacturer procedures)—Type 1 labels and presented in Type 3 declarations seeking certification is the fees declarations affirm compliance must be independently verified by paid by that manufacturer for with pre-determined, multi- the program operator. assessment and verification attribute, lifecycle-based services. Third-party certification environmental performance The LEED Material Disclosure warrants that all aspects of the requirements for products within certification program, from and Assessment Pilot Credit the same category. However, standard development, operations products bearing Type 1 eco-labels In 2012, the USGBC modified the and verification of environmental may offer different levels of LEED certification credit structure performance claims, are conducted environmental performance in to award pilot credits for the use of independently and free of any areas outside the scope of the label environmentally preferable building conflicts of interest. or declaration. products and materials that have been certified by a third-party. The LEED Types of Eco-Labels •  Type 2 (ISO 14021: 1999, Material Disclosure and Assessment Environmental labels and and Declarations pilot credit, known as Pilot Credit 61, was declarations—Self-declared developed to increase the use of building An eco-label or declaration signifies a environmental claims Type 2 products and materials “with life cycles, product’s compliance with environmental environmental labeling)—Type ingredients, and attributes understood performance requirements and 2 labels and declarations reflect and optimized to improve overall standards. According to some estimates, environmental performance claims environmental, economic and social there are over 430 different eco-labels made by a product manufacturer. performance.”11 The pilot credit applies to in use by 25 industry sectors in 246 The performance criteria have the use of structural and non-structural countries around the world10. As such, not been defined or accepted, or building products and materials under all there is understandable confusion about independently verified. LEED rating systems, with the exception the meaning and importance of different of residential construction. •  Type 3 (ISO 14025-2006, types of eco-labels. Environmental labels and Pilot Credit 61 calls for the use of certified To bring clarity to the significance declarations—Type 3 environmental building products and materials that have of various types of eco-labels, the declarations—Principles and a total weighted value of at least 20% of International Organization for procedures)—Type 3 eco-labels all non-structural materials and products page 6
  • 7. Driving Performance and Transparency in Green Building Products and Materials used in a project. Building products and Achieving Performance and whether a product is, in fact, “greener” materials qualify for credit in one of the Transparency in Environmental than a traditional product, and following three ways: often considers health and social Certifications 1. Having a publicly available LCA impacts as well as environmental that has been independently As the LEED pilot credit program impacts of products. At the same peer reviewed in accordance illustrates, certifying the environmental time, multi-attribute standards and to ISO 14044 performance of building products certifications simply denote that a 2. Having a third-party certified, and materials can proceed along product is more preferable than industry-wide EPD or one of several paths. A third-party another from a sustainability certification based on compliance with perspective, without indicating the 3. Having a third-party certified, an environmental performance standard reason that it is more preferable. This product-specific EPD indicates that a product meets one or approach can prove challenging to more sustainability criteria, such as those looking for more transparent Equally important, the method selected energy reduction, recyclability or information about a product’s can increase or decrease an individual resource conservation. Certification environmental, social or health product’s contribution to the overall based on an assessment of a product’s performance against specific parameters. weighted value. For example, the weight of products with a certified, overall environmental impact Certification of an EPD warrants that the industry-wide EPD is calculated at empowers purchasers to make environmental impact information cost, while the weight of products more informed decisions. presented has been reviewed and with a certified, product-specific EPD validated by a credible third-party. Based Of course, each available certification is calculated at two times their cost. on life-cycle assessment and thinking, an path offers its own unique advantages The weight of products with a product- EPD essentially tells a product’s overall and constraints. Certification to product specific LCA is calculated at half their cost. environmental story, enabling purchasers performance standards that address to make more informed decisions about a single attribute, e.g., lower levels of LEED Pilot Credit 61 elevates the the products they buy. However, as noted volatile organic compound emissions, importance of using building products earlier, EPDs do not indicate whether a or increased use of recycled content, etc., and materials that are accompanied product is environmentally preferable is valuable for demonstrating leadership by detailed information about their and, as such, should not generally be in a specific environmental performance environmental profile, making them used to evaluate a product against an category. At the same time, however, more a more attractive choice for environmental performance certification. single product attribute certifications architects, developers and builders. The do not offer an overall view of a Given the unique advantages and pilot credit program’s weighted value product’s environmental performance. constraints of each of these certification calculation based on product certification options, manufacturers of building type also allows manufacturers to select Certification to product performance products and materials should view them a certification path that represents a standards based on multiple attributes as complementary and not competitive. balance between a product’s economic address a variety of important impacts When used in conjunction with EPDs, value and its contribution to the overall within a given product category. It can single-attribute and multi-attribute environmental performance of a project. provide an overall assessment of product certifications provide page 7
  • 8. Driving Performance and Transparency in Green Building Products and Materials performance metrics that assess whether a product is environmentally preferable while also disclosing its lifecycle-based impacts. Together, these certification options provide buyers with objective, comparable environmental performance data to facilitate an informed product selection process. This allows buyers to more easily identify environmentally preferable products, thereby driving environmental performance in sustainable building efforts. Conclusion Today, green construction represents a substantial sector within the construction marketplace, impacting both commercial and residential construction projects. Even as the overall construction market experiences nominal growth, economic indicators point to robust increases in green construction between now and 2016. Architects, developers and builders are reporting increased requests for environmentally sustainable construction projects, and are frequently specifying building products and materials that are environmentally preferable. Green building certification programs are recognizing the importance of sustainable products and materials in reducing a building’s overall environmental footprint. This trend is perhaps best exemplified by the recently introduced LEED Material Disclosure and Assessment Credit that offers credits for third-party certified building products and materials. Attention to the use of sustainable building products can be expected to increase, as the aggregate impact of building products and materials represents a larger proportion of a building’s overall environmental footprint. These market dynamics provide important opportunities for manufacturers of third-party certified building products and materials. Certifications of a product’s environmental performance that are complemented by a third-party certified disclosure of its environmental lifecycle impacts equip manufacturers with an unrivaled tool for marketplace differentiation. Moreover, these certifications provide buyers with assurances of a product’s environmental preferability, as well as a manufacturer’s commitment to support sustainable building practices. For further information about UL’s environmental product declaration and certification programs, please contact environment@ul.com. page 8
  • 9. Driving Performance and Transparency in Green Building Products and Materials 1 “Annual Energy Outlook 2011, with Projections to 2035,” U.S. Energy Information Administration, U.S. Department of Energy. Apr. 2011. Web. 31 Mar. 2012. http://www.eia.gov/forecasts/aeo/pdf/0383(2011).pdf 2 “The Top 100 Green Contractors, 2011,” Engineering News-Record. 19 Sep. 2011. Web. 31 Mar. 2012. http://enr.construction.com/toplists/greencontractors/001-100.asp 3 “Green Building Market Barometer, 2010” Turner Construction. Undated. Web. 31 Mar. 2012. http://www.turnerconstruction.com/content/files/Green%20Market%20Barometer%202010.pdf 4 “Architects and Builders Study,” survey of 203 architects, builders and contractors prepared for UL Environment by Slack Barshinger & Partners, Inc. 13 Jan. 2010. 5 “Green & Sustainable Building Construction in the U.S.: Market Research Report,” IBIS World. Dec. 2011.Summarized in “Green construction boom predicted for at least the next five years,” Retail Design & Construction Today. 7 Dec. 2011. Web. 31 Mar. 2012 http://www.rdctoday.com/MasterArticlePage/ArticleView/tabid/920/ArticleId/5793/Green-construction-boom-predicted-for-at-least- the-next-five-years.aspx 6 “Green Home Builders and Remodelers Study,” McGraw-Hill Construction. Feb. 2012. Summarized in “Green Homes Market Expected to Increase Five-Fold by 2016,” McGraw-Hill Construction press release. Web. 31 Mar. 2012. http://www.construction.com/about-us/press/green-homes-market-expected-to-increase-five-fold-by-2016.asp 7 “What LEED Is,” U.S. Green Building Council. Web. 31 Mar. 2012. http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988 8 “Executive Order: Federal Leadership in Environmental, Energy, and Economic Performance,” The White House. Oct. 2009. Web. 10 Sep. 2011. http://www.whitehouse.gov/assets/documents/2009fedleader_eo_rel.pdf 9 “Executive Order 13514: Sustainability and Greenhouse Gas Emissions Reduction,” Congressional Research Service. Dec. 2009. Web. 20 Sep. 2011. http://www.cnie.org/NLE/CRSreports/10Jan/R40974.pdf 10. “Ecolabel Index,” Ecolabel Index Advisory Services. Web. 2 Apr. 2012. http://www.ecolabelindex.com/ 11. “Pilot Credit 61: Material Disclosure and Assessment,” LEED Pilot Credit Library, U.S. Green Building Council. Mar. 2012. Web. 3 May 2012. http://www.usgbc.org/ShowFile.aspx?DocumentID=18547 UL and the UL logo are trademarks of UL LLC © 2012. No part of this document may be copied or distributed without the prior written consent of UL LLC 2012. page 9