Further information Skanska AB www.skanska.com Contact Noel Morrin, SVP Sustainability & Green Support [email protected]

Skanska & Carbon Footprinting in 2011 Skanska conducted 35 carbon footprints in 2011 to benchmark project carbon emissions and to help identify low-carbon project options, which can result in project carbon and financial savings.

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Skanska Project Carbon Footprints in 2011 by Country Sweden (including 2 by CDN, 2 by RDN & 1 by ID) – 15 UK (including 3 by ID) – 13 Norway – 4 Finland (conducted in partnership with Skanska Finland & CDN) – 1 Czech Republic (Skanska a.s. in partnership with the Czech division of CDE) – 1 USA (conducted in partnership with US Building & US CD) – 1

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This document briefly describes how Skanska’s BUs work to measure and reduce project carbon emissions, and illustrates their work with relevant project examples. 10 of the 20 examples cited supported project carbon savings, for embodied and/or operational carbon. Clients are increasingly demanding carbon footprinting services, which are fundamental components of Skanska’s Journey to Deep Green™ and Color Palette™. Skanska Business Units (BUs) use various techniques to calculate the carbon footprint of projects. In addition to local tools, Skanska has developed a Group-wide project carbon footprinting tool, as part of its Green Toolbox, to support project teams and BUs that do not have an established footprinting tool of their own. In May 2012, the ENCORD (European Network of Construction Companies for Research and Development) Protocol was launched, to which Skanska was an important contributor. The Protocol aims to guide how construction sector actors can measure and report their greenhouse gas emissions. It sets out minimum good practice requirements for measuring and reporting emissions. Carbon savings often correspond directly to financial savings through reduced energy and material use. Carbon-related financial savings are expected to increase in the future due to increasing energy prices and carbon tax rises in Skanska’s markets. Carbon measurement or footprinting is the first step toward identifying low-carbon project options that lead to potential savings opportunities.

What is a project carbon footprint? The carbon footprint of a project can be defined as the carbon dioxide (CO2) emissions resulting from construction materials, construction activities, lifespan operation and eventual demolition. A carbon footprint can also be expressed in carbon dioxide equivalent (CO2e), which is a measure of how much global warming a given quantity of greenhouse gas may cause by using CO2 as a reference. CO2 is one of many greenhouse gases. The term “carbon” is commonly used when referring generically to either CO2 or CO2e emissions.

Preliminary vs Project carbon footprinting A Preliminary carbon footprint is conducted at the design stage, whereas a Project carbon footprint is conducted during construction. The Preliminary Carbon Footprint is to serve as a baseline for the project whilst Project Carbon Footprint accounting is based on actual project information to validate the project’s performance.

Embodied vs Operational carbon 146 147 656

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A carbon footprint can be divided into embodied carbon and operational carbon. Embodied carbon is the total emissions related to construction materials and construction activities, and operational carbon denotes the emissions associated with the heating, cooling and electrical consumption of a building during its operational lifespan.

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The scope of a project’s carbon footprint can differ depending on the objectives of the study, data limitations and the footprinting criteria used. Carbon related to operation and demolition may also be excluded when Skanska has limited involvement in these phases.

2,327 1,829

Embodied carbon by building component (tCO2e)

Commercial Development Nordic (CDN)

Structure – 2,327 Foundations – 1,829 Internal room structures – 1,064 Installations – 334 External roof – 218 Construction – Ground work Façades – 147 Interior finishes – 146 Other – 656

In 2011, CDN conducted three project carbon footprints. The projects were Gångaren 16, Bassängkajen and the Manskun Rasti buildings Neptune and Cathy (Skanska House, highlighted in the Finland section). CDN conducted the footprints to create a baseline, which can be used to make carbon savings on future projects through low-carbon material and supplier choices.

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16 31

Bassängkajen Operational Carbon Footprint (%) Tenant electricity – 37 Heating – 31 Communal electricity – 16 Cooling – 12 Hot water – 4

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Bassängkajen Skanska CDN & Sweden conducted a project carbon footprint for the Bassängkajen commercial development in Malmö to develop their carbon knowledge and experience. The project’s carbon footprint was calculated with Skanska Sweden’s owndeveloped ECO2 carbon footprinting tool. The study calculated the building’s embodied carbon and operational carbon, which were responsible for 42 percent and 56 percent of the building’s total lifespan emissions respectively. The embodied carbon emissions from the extraction, manufacture, processing and transportation of construction materials to the site, as well as the construction process, was calculated to be 6,900 tCO2e or 382 kg/m2. The structure and foundations were responsible for approximately 75 percent of the embodied carbon emissions, due to the large quantities of cement and steel used. The team concluded that carbon reduction efforts on future projects should focus on these construction components by incorporating low-carbon design solutions and materials with a high proportion of recycled content. The building’s annual operational carbon emissions were calculated to be 7.6 kg/m2. Tenant electricity use and the building’s heating were responsible for the greatest proportion of the total operational carbon emissions, accounting for 37 percent and 31 percent respectively.

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5,657

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Czech Republic Skanska a.s. (in partnership with the Czech division of CDE) conducted the first ever embodied carbon footprint in the Czech Republic on the City Green Court project to develop its knowledge and experience of gathering and processing carbon data from suppliers and subcontractors. The footprint has provided Skanska with a benchmark, which can be used to identify carbon savings on future projects in the Czech Republic. City Green Court

City Green Court Embodied Carbon Emissions by Construction Material (tCO2) Concrete & concrete products – 5,657 Metal – 4,310 Wood – 213 Quarry materials – 110 Other materials – 58

429 615 832 5,657

2,428

City Green Court Embodied Carbon Emissions by Construction Component (tCO2) Concrete frame – 5,657 Floor slabs – 2,633 Foundation – 2,428 Columns & beams – 832 Façade – 615 Other components – 429

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Skanska House Embodied Carbon Emissions (%) Concrete – 38 Hollow core concrete – 23 Steel – 15 Breeze blocks – 10 Gypsum – 6 Bricks – 3 Other – 5

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Finland Skanska Finland conducted one project carbon footprint in 2011. The BU has developed a BIM-based carbon footprinting tool, and will develop its carbon footprinting knowledge and experience in 2012 by using the tool on several projects.

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The 8-story building offers around 16,300 m2 of rentable office/retail space. City Green Court was the first building in the Czech Republic to achieve LEED (Leadership in Energy and Environmental Design) Platinum Pre-Certification. The project’s embodied carbon footprint, including construction materials, on site activities and transportation, was calculated to be 11,034 tCO2e in total. Construction materials were responsible for approximately 94 percent of the total footprint, with on site activities and Skanska’s transportation responsible for 4 percent and 1 percent of the footprint respectively. The team obtained carbon data directly from the project’s subcontractors and suppliers and used Skanska’s own internal carbon footprinting tool to carry out the analysis.

Skanska House Skanska Finland (BIM Competence Center) in cooperation with Skanska Norway, trialed use of BIM carbon analyses during the design of Skanska House, which is Skanska Finland’s head office in Helsinki. The tool was used to calculate the embodied carbon of both the Neptune and Kathy building, and their underground parking. Project also pioneered the development of an easy to use carbon calculator for site operations and material transportation. The BIM study provided a relatively quick carbon benchmark, and Skanska Finland intends to build on the results by working with their supply chain to realize embodied carbon savings on future projects.

Infrastructure Development (ID) Skanska ID has developed a predictive carbon footprinting tool, which can be used to quickly estimate how much carbon projects will emit over their lifecycle. The tool was trialed on the Papworth Hospital bid and is currently only available for buildings, although it is being adapted to calculate the footprint of infrastructure projects. The tool can be used to identify design/specification decisions that reduce carbon if used early in the project planning stage.

Papworth Hospital bid A Skanska-led consortium is one of two parties shortlisted for the US$ 255 million Papworth Hospital 25-year PFI contract. The preferred bidder is to be selected in late 2012. Skanska conducted a preliminary carbon footprint and used a 3D model to develop a low-carbon design. The team then undertook detailed energy modeling to ensure the best balance between embodied and operational carbon. An embodied water footprint was also conducted. Skanska calculated the preliminary embodied carbon footprint to be 42,220 tCO2e and that lifecycle replacement carbon during the concession period would amount to 8,660 tCO2e. The hospital’s operational would result in annual carbon emissions of 7,318 tCO2e.

Norway Skanska Norway uses the government’s carbon calculation tool, Klimagassregnskap, for building projects and Skanska’s general carbon footprinting tool for civil projects. Klimagassregnskap is a free web-based footprinting tool, which can be used to calculate a building’s carbon footprint by calculating emissions from materials, energy and transportation during construction, and operational energy and transport. The BU conducted four project carbon footprints in 2011, two building (Søreide School and Telemark Rehab Center) and two civil projects (highway projects K22 and E6 Skaberud – Labbdalen). The two building project carbon footprints were part of the pilot program “Framtidens byer” (Cities of the future), which involves the 13 largest cities in Norway and aims for a 50 percent carbon reduction in total from materials, and the building’s operational energy and transport. The carbon footprints on the highways projects were part of the contractual agreement with the Norwegian Highway Agency. Søreide School

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Søreide School Lifecycle Carbon Footprint (kg CO2e/m2/year) Construction materials – 3 Operational energy – 20 Operational transport – 22

Skanska will build, own and operate the Søreide School buildings in Bergen as part of a US$ 35 million 25-year public-private partnership, whereby the municipality is the tenant and takes over the buildings following this period. The 9,000 m2 school will accommodate 900 students from 1st to 7th grade. The building’s preliminary carbon footprint, including materials, operational carbon and operational transport emissions, was 47 percent less than the reference design model for the building. Carbon savings were made by selecting low-carbon bearing structures, walls and floors, and primarily using wood rather than concrete. The building also meets Norwegian passive house standards and is equipped with an air-water heat pumps and a solar water heating system. Vehicle parking on the site will be significantly restricted, bicycles will be promoted and the school will use electric vehicles. The project will make lifecycle carbon savings of 216 tCO2e per year. The construction of the project began in June 2012, and the school will be in use by the end of 2013. Telemark Rehab Center

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Telemark Rehab Center Lifecycle Carbon Footprint (kg CO2e/m2/year) Construction materials – 7 Operational energy – 33 Operational transport – 5

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Skanska constructed the US$ 10 million rehabilitation center, near the city of Skien. The 1,592 m2 facility’s lifecycle carbon footprint is 46 percent lower than the reference design model for the building. Low-carbon construction materials included hollow fly ash concrete slabs (one of the first uses in Norway), the use of a single plasterboard layer where possible instead of double layering, wooden-framed windows, a wooden façade and a sedum green roof. The building has been designed to achieve Norwegian passive house standards and is equipped with air-water heat pumps and photovoltaic solar panels. The Telemark Rehab Center was handed over to the client in July 2012 and is set to make operational energy savings of 47 percent, or 60 tCO2e per year, throughout its lifespan.

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E6 Skaberud – Labbdalen

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E6 Carbon Footprint (tCO2e) Extraction & manufacture of materials – 2,297 Site machinery & vehicles – 1,561 Transportation of construction materials – 160 Site electricity – 38 Waste management - 21

Skanska was the general contractor of the US$ 18 million project for the Norwegian Highway Agency and the project was carried out between January 2009 and February 2011. The project involved the widening of a 1,800 m stretch of highway to deal with heavy traffic and the creation of a 2 m wide highway median. Skanska used its own carbon footprinting tool on the project and collected data directly from suppliers. The total carbon footprint of the project was calculated to be 4,056 tCO2e. The figures will be used as a benchmark with which to make carbon savings on future projects. K-22 Kolsåsbanen Skanska was the general contractor on the US$ 16.8 railway upgrade scheme. A carbon footprint was conducted for the project, which calculated the footprint to be 3,300 tCO2e. The footprint will be used as a benchmark with which to make carbon savings on future projects.

Residential Development Nordic (RDN) 1 2 3 7 36

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K22 Carbon Footprint (%) Steel – 36 Concrete – 31 Aggregate – 20 Material transport – 7 Diesel – 3 Site electricity - 2 Sand – 1

RDN conducted two project carbon footprints in 2011 Limhamns Sjöstad and Linaberg, both of which are in Sweden. More project residential development carbon footprints are underway in the Nordic countries in 2012, including Villenga in Norway and several projects in Sweden. Skanska’s residential development teams in Scandinavia have begun to conduct preliminary carbon footprints of some building concepts both multi-family and single houses. The footprints are being used to establish project baselines and to gain an understanding of the variations between projects, building types and concepts. Teams will then be able to conduct value engineering to reduce carbon emissions and project costs from the design stage. Limhamns Sjöstad The project is located in Malmö and consists of low-rise terraced housing. The project’s carbon footprint amounted to 680 kg CO2e/m2 and identified steel stairs and metal plating as the significant contributors to the footprint. Linaberg The project includes 85 apartments in two apartment buildings in Bromma, Stockholm. The project’s carbon footprint amounted to 1,693 kg CO2e/m2 and identified the concrete building frame, heating and sanitation systems and the brick façade to be the greatest contributors to the footprint. Carbon reduction was not achieved on the project, although the carbon footprint will be used as a benchmark to promote carbon savings on future projects.

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Sweden 465 778 107 Glasbruket Carbon Footprint (tCO2e) Materials (production and transport to supplier) – 778 Transport (from supplier to project) – 107 Energy (during construction) – 465

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Skanska Sweden conducted ten project carbon footprints in 2011, primarily on its own initiative, to develop its carbon knowledge and experience. Skanska Sweden has developed the ECO2 tool, which is linked to a cost estimation program that calculates carbon emissions from the extraction of raw materials, production of materials, transport to the construction site, and site activities. The tool can also calculate operational carbon emissions throughout the project’s lifespan. In future, Skanska Sweden plans to further develop the ECO2 tool to incorporate BIM (Building Information Modeling), which could create more comprehensive models earlier in the project and help identify low-carbon materials and construction options. Glasbruket 1, Limhamn The project involved the construction of roads and drains in Malmö, and calculated the project’s production carbon footprint to be 1,350 tCO2e. The project team substituted concrete drainage pipes with those made from polyethylene, which decreased lifecycle carbon emissions by around 40 percent or 100 tCO2e. The use of polyethylene pipes also reduced project costs by US$ 115,000. However, the client finally opted for a higher-quality type of polyethylene pipe, with a longer lifespan, which reduced the financial savings. Entré Lindhagen Skanska conducted a carbon footprint for the ground and concrete works on the Entré Lindhagen commercial and residential development in Stockholm, which will provide 55,000 m2 of office space and 170 apartments when complete. The carbon footprint amounted to 7,210 tCO2e.

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Entré Lindhagen Carbon Footprint (tCO2e) Materials (production and transport to supplier) – 4,981 Transport (from supplier to project) – 139 Energy (during construction) – 2,090

The project aims to obtain LEED Platinum and will be owned by Skanska Fastigheter (Skanska Properties). Entré Lindhagen will be Skanska’s new head office and the project has focused on sustainability throughout. For example, an energy efficient cooling system that comprises of 141 bore holes will contribute to a 50 percent reduction in the building’s energy use compared with the Swedish energy code. “Green asphalt” was also used on the project, which does not involve the use of fossil fuels. Green asphalt reduces carbon emissions by 65 percent during manufacture and reduced the project’s footprint by 12 tCO2e. Skanska’s efforts to measure and reduce carbon emissions on the Entré Lindhagen project were driven by the desire to construct a very green head office. NS 14 Bridge bid Skanska conducted a preliminary carbon footprint during the tender stage on its own initiative to demonstrate the potential carbon and financial savings that could be realized through an alternative design. The tender phase was ongoing as of July 2012. Skanska proposed to construct a single 500 m long bridge rather than two shorter bridges as initially requested by the client. Skanska’s proposal had a total carbon footprint of 7,700 tCO2e, which was 2,000 tCO2e less and would save around US$ 7 million compared with a two-bridge project. Significant reductions in the quantities of steel and concrete were responsible for the potential carbon and financial project savings.

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Road 55/56, Eastern bypass Katrineholm

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The US$ 44 million project included the construction of 13.6 km of highway and 7 bridges. Skanska calculated the project’s carbon footprint to be 14,500 tCO2e. A preliminary carbon footprint was conducted during the design phase and a project footprint halfway through the construction based on actual project carbon figures. The project carbon footprint was 1,100 tCO2e less than the preliminary carbon footprint due to the reuse of concrete and asphalt materials from the old road surfacing. 400 tons of asphalt was saved and nominal savings of US$ 3,600 were made for the client. Torvalla retirement home

Road 55/56 Carbon Footprint (%) Materials (production and transport to supplier) – 70 Energy (during construction) – 27 Transport (from supplier to project) – 3

Skanska constructed the Torvalla retirement home in Östersund, which included two buildings each with 32 apartments, and a gross floor area of 8,650 m2. The project’s carbon footprint amounted to 3,770 tCO2e in total. The energy efficient buildings are designed to annually use 81 kWh/m2 and generate 32 tCO2e in operational carbon emissions (compared with less under 150 kWh/m2/year for Sweden’s energy code: climate zone 1).

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Skanska’s carbon footprinting work is becoming well known in the UK, and some insightful clients occasionally request relevant services. For example, London Underground Limited (LUL) approached Skanska to hold an educational workshop for their management team, and Skanska has since assisted LUL to develop a carbon workshop for their entire supply chain.

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Torvalla Carbon Footprint (tCO2e) Materials (production and transport to supplier) – 3,472 Transport (from supplier to project) – 179 Energy (during construction) – 122

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Skanska UK conducted ten project carbon footprints in 2011. The BU has developed training materials and focused on providing specialist carbon footprinting training to key personnel in bid teams and project teams UK wide. A Life Cycle Costing/Life Cycle Analysis Forum has been set up and a UK LCC tool developed. Skanska UK also uses carbon footprints to support the bidding process for similar projects. For example, the HMS Thameside carbon footprint was a contributing factor to why Skanska subsequently won the HMS Grampian contract.

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HMP Thameside Embodied Carbon Emissions by Major Construction Materials (tCO2) Concrete & concrete products – 11,327 Metal – 4,149 Cement & mortar – 3,830 Quarry materials & other – 1,194

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Anglian Water The Anglian Water Asset Management Plan (AMP) involves the upgrade of existing sewage and water treatment infrastructure throughout the Anglian region of England. Skanska works on multiple sites and predominantly delivers design, civil and structural engineering services, but has also helped to develop an intranet-based carbon footprinting tool for Anglian Water. The tool is used at a project’s design phase to identify low-carbon modifications that can be made to realize carbon savings. The Alliance has won the Drop CO2 Award for working to reduce embodied carbon throughout project planning, design, build and delivery, and for bringing about a cultural shift in approaches to carbon across the Alliance. As part of AMP5, the Bedford Waste water Treatment Works was upgraded with an Integrated Fixed Film activated Sludge solution to provide additional capacity. The upgrade led to embodied carbon savings of 27 percent or 1,966 tCO2e saving compared with the preliminary footprint design. Overall operational carbon was reduced by 50 percent, or 603 tCO2e, and financial savings of approximately US$ 70,000 per year were realized. HMP Thameside Skanska constructed the US$ 125 million Category B Thameside prison in southeast London, which has a maximum capacity of 900 male prisoners. HMP Thameside (formerly known as Belmarsh West) included the first ever prison building to achieve BREEAM (BRE Environmental Assessment Method) Outstanding, and nine other buildings that achieved BREEAM Excellent.

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3,741 11,274

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Skanska calculated the embodied carbon emissions of the main construction components to be approximately 20,500 tCO2. Concrete and concrete products used to construct the internal walls were responsible for the bulk of the building’s embodied carbon. The team opted for a ‘zero carbon Aluminum Roofing system’, which was manufactured from 100 percent recycled metal and utilized hydroelectric energy during the manufacturing process. The roofing system saved approximately 65 tons CO2 (based on Skanska’s carbon calculator and standard recycled aluminum). M25

HMP Thameside Embodied Carbon Emissions by Construction Component (tCO2) External walls – 11,274 Foundation – 3,830 Steel frames – 3,741 Joinery, lining, etc & other – 1,655

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M25 Carbon footprint (tCO2) Embodied carbon of construction materials – 207,000 Staff commuting and business travel – 35,000 Site electricity, gas and diesel usage – 30,000 Waste management – 273

Skanska calculated the carbon footprint of the US$ 1.65 billion M25 Widening Scheme, near London, which involved the widening of 60 km of the highway as part of a Design, Build, Finance, Operate (DBFO) contract for the UK Highways Agency. A carbon footprint was conducted as part of the project’s contractual agreement. The team used the Highways Agency Carbon Calculation tool and calculated the project’s total carbon footprint to be 272,270 tCO2e, 76 percent of which would result from embodied carbon and transportation of construction materials. The project has focused on managing and reducing its embodied carbon, and the tool has played a vital role in indentifying potential carbon savings throughout the project. Carbon reduction measures focused on three main areas: low-carbon sheet piles, the use of recycled aggregates and the reuse of the existing pavement, to reduce carbon emissions by around 103,000 tCO2e or 27 percent in total compared with the original carbon estimate for the project of approximately 380,000 tCO2e. The project’s sheet piles were made entirely from recycled steel and in conjunction with a king sheet pile system, which involved long sheet piles with a short intermediate pile to reduce the steel required by 25 percent, saved 44,000 tCO2e. 2.4 million tons of recycled aggregate and processed demolition waste from excavation and other construction sites, which saved approximately 35,000 tCO2e and cost around 60 percent less than virgin materials. A 35 mm wearing course was overlaid where possible rather than the originally proposed crack and seat with 180 mm overlay, which saved 360,000 tons of asphalt, 24,000 tCO2e in carbon emissions and around US$ 38 million (based on 0.066 tCO2e/t asphalt and US$ 108 /t laid). South East Electricity Substation Alliance (SEESA) SEESA is a joint venture between Skanska, Alstom, Mott MacDonald and the client National Grid to upgrade its electricity transmission network in the southeast of England. Skanska’s 5-year contract is valued at over US$ 160 million. The project has involved conducting carbon footprints on a project level, along with achieving ambitious waste to landfill targets and identifying more sustainable construction methods. Specific examples are the Kemsley and West Thurrock substations where inert waste was sorted, crushed and screened to allow it to be reused as aggregate. Skanska saved around US$ 50,000 and 614 tCO2e in transport-related emissions alone by reusing inert waste on the sites. The team also developed a reusable packing crate for aluminum piping, which saved around US$ 100,000 and over 16 tCO2e. Other financial and carbon savings were made by reusing excavation materials on site as noise attenuation bunds and landscaping, by using fly ash or ground granulated blastfurnace slag instead of conventional carbon-intensive cement, and by sharing surplus items among SEESA projects.

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733 10th & G Embodied Carbon Emissions (%) Concrete works – 62 Metals – 16 Personnel travel – 8 Curtain wall – 4 Demolition & Excavation – 2 Finish materials – 1 Other – 7

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Carbon footprinting is in its infancy in the US due to the absence of regulatory framework and limited market awareness of cost savings liked to carbon management. There is growing evidence that some topend customers in the high technology sector recognize the value of carbon footprinting. In the US, Skanska has used the company’s internal carbon footprinting tool to calculate embodied carbon. Commercial Development US conducted one project carbon footprint in 2011. Skanska USA Building, Commercial Development US and Civil US plan to conduct footprints in 2012. In the future, Skanska aims to use technology to better integrate carbon data into the design and construction process, for example through the use of BIM. It is also working to better inform prospective clients, tenants and investors of the value of reducing a project’s carbon footprint, particularly concerning the associated financial benefits. 733 10th & G The 733 10th & G mixed-use development in central Washington DC was designed to LEED Core and Shell certification at the Gold level and involved the first carbon footprint study of its kind in the US. The US$ 85 million project was completed in September 2011 and provides 15,300 m2 of high quality office space on eight floors. Skanska measured the project’s embodied carbon emissions to be 6,340 tCO2e, with the concrete works responsible for 63 percent of the footprint. The study provided Skanska with a US commercial project benchmark, which can be used to guide, analyze and improve the carbon performance of future projects.