Sustainability in Project Management: Enexis Case
Introduction.
It is a well-known fact that “protecting an organization’s capital base is a well-accepted business principle” (International Institute for Sustainable Development, 1992, p.6). This assertion is especially true when it comes to giant corporations with business operations that can affect millions of lives. However, there is now increasing pressure from society, government, employees, business partners, and other stakeholders for corporations to reconsider sustainable development in their business practices (Labuschagne, 2005, p.2). Although corporations are entities created to please shareholders it is imperative to consider corporate social responsibility and sustainable development.
Many business organizations turn a blind eye to the impact that they cause to the environment. But as climate change and environmental degradation has manifested their cause and effect, consumers are demanding that corporations must be held accountable for questionable business practices. Aside from worrying about the increasing costs of fossil fuels, there is another problem that plagues this planet. The continuous use of fossil fuels is creating significant amounts of air pollutants. Cities will soon become uninhabitable if nothing is done to curb dependence on non-renewable and carbon-emitting fuels.
An ethical dilemma ensues when the company is forced to decide to give back to the community or satisfy the needs of the shareholders. The investors or shareholders have only one thing in mind and that is to earn a profit through the money that they invested. But in the 21 st -century pressure from consumer groups and government policies can force corporations to change their core business strategies or face a public backlash.
One of the major steps that have to be accomplished is the significant reduction of carbon dioxide gases released into the atmosphere. This is easier said than done especially when there is a great demand for energy consumption and goods that are by-products of an energy-intensive manufacturing process. At the same time, businessmen must continue to address the need for cars, electronic equipment, processed foods, and other processes that require a great deal of energy to run continuously.
The backlash from the general public is due to the impact of the degradation and destruction of ecosystems brought about by excessive exploitation of natural resources (Pollard, 2009). Many people are now aware that climate change and flash floods are direct results of non-sustainable business practices. It is time to consider sustainable development principles that would ensure a long-lasting relationship between the business community and the environment (Pollard, 2009).
According to the Brundtland Report by the World Commission for Environment and Development in 1987, sustainable development was defined as “development that meets the needs of the present without compromising the ability of future generation to meet their own needs” (Gareis, Huemann, & Martinuzzi, 2009, p.2). Thus there is a need to redefine the meaning of a corporation because “a company is increasingly seen as a social actor with an array of responsibilities towards a broader group of social actors than just the company’s shareholders or its subcontractors or employees – i.e. communities as a whole, regulators, interest groups and others” (Gareis, Huemann, & Martinuzzi, 2009, p.3).
In the 21 st century, it is easier to understand why many corporate leaders are jumping on the sustainable development bandwagon. It has become clear that various stakeholders and the general public are clamoring for sustainable practices (Prout, 2006). As more people are educated regarding climate change and the need to protect the environment, there will be increasing pressure from various stakeholders regarding the importance of sustainable development in corporate strategy and policy. However, many corporate leaders are merely paying lip service and yet unwilling to commit to change the direction of their respective companies (Gareis, Huemann, & Martinuzzi, 2009, p.2).
In a 2002 survey on the 101 Fortune 1000 companies, the PricewaterhouseCoopers Sustainability Survey revealed that “72% of the respondents do not include the risk and opportunities of sustainability in their project, investment and transaction valuation processes” (Labuschagne & Brent, 2007, p. 4). Besides, data from other research firms also revealed that “traditional business management systems are solely geared towards financial performance and therefore exclude environmental and social sustainability aspect” (Labuschagne & Brent, 2007, p. 4).
The purpose of this study is to answer two major research questions. The first question reads as follows: how can Enexis integrate the principles of sustainable development into their project management framework? The second question reads as follows: which challenges and potential problems can be identified for project management when integrating principles of sustainable development?
Research Approach
Enexis must not only be evaluated based on a general statement regarding its commitment to sustainability. The company must also be evaluated based on their commitment to sustainable project development. It is therefore important to gather pertinent information regarding Enexis. The data gathering requirement can be addressed by using a case study on Enexis. Aside from data that can be gleaned from this case study, other sources of information are public documents such as the Enexis Annual Report of 2010. Another major source of information is the official website of the company that provides data regarding their commitment to sustainable development and the various activities related to this goal.
The proponent of this study will also use the maturity of sustainability in the projects questionnaire (Silvius & Schipper, 2010). Furthermore, the proponents of this study would like to determine how Enexis understands the importance of linking sustainable development and project management. A review of related literature will be conducted to understand even further the importance of sustainable development, corporate social responsibility, and the challenges involved when linked to project management.
The Case of Enexis
Enexis is an energy company and its primary purpose is to manage the power grid in the northern, eastern, and southern Netherlands (Enexis, 2011). The primary task of the company is to ensure that customers can have access to gas and electrical sources of energy (Enexis, 2011). The company is responsible for the energy needs of 2.6 million households as well as a significant number of businesses and government offices (Enexis, 2011). The company can be considered a monopoly because it serves as a major link between residential and business consumers of energy to their respective energy suppliers. Their existence is made more evident every time a new house has been constructed or a business establishment requires a new connection to the energy supplier.
Enexis used to be under the umbrella of Essent the largest energy company in the Netherlands (Enexis, 2011). As mentioned earlier, Enexis is a dominant force in the Netherlands energy industry. Imagine the impact of the company when it was still part of the Essent Network. Perhaps due to monopoly issues, the government ratified laws to prevent corporate giants from controlling key industries. In the Netherlands, the said legislative act was called the Network Management Act (Grevelman & Kluiwstra, 2010). The force of the said law compelled Enexis to work outside the control of the Essent Network.
As of January 2011 companies that are related to energy production, trading, and supply of energy can no longer be bundled together. But Enexis did not wait until 2011 to comply with the new laws. Since June of 2009, Enexis is fully unbundled and working independently outside the Essent Network (Grevelman & Kluiwstra, 2010). Even as an independent entity Enexis employs 3,511 employees (Grevelman & Kluiwstra, 2010). Enexis may have cut its ties to Essent Network but it is still a significant energy company in the Netherlands. Thus, it is important to point out that this organization has made it known that it is committed to sustainable development. Before going any further it is important to take a closer look at the definition of sustainability, sustainable development, and corporate social responsibility. Insights gleaned from a review of literature will be used to assess the seriousness of Enexis’s commitment to sustainability. It is also imperative to discover how the company integrates sustainable development and project management.
Literature Review
Using the regulatory approach – the creation of laws and policies – in solving global climate change is almost impossible (Taylor, 2008). There are many reasons why it is difficult to follow the principles suggested by sustainable development advocates. Ray Oglesby, the Interim Director for Global Environment Program of Cornell University explained why:
Uncertainty in all long-range climate predictions is frequently cited as a reason for doing little or nothing in the way of adaptation and control … add to this the sheer complexity of climate prediction mechanisms and the many determinants of climate still poorly understood (White, 1992, p.3).
The challenge to change business practices that are destructive to the environment is very evident in today’s world. But when the discussion is elevated to human rights issues the hurdles to development are magnified significantly. Take for example the perspective of European countries dealing with suppliers from Asia. It would be difficult to care for someone that lives thousands of miles away. This problem is intensified even further as seen in an observation made by researchers who wrote:
In many subcultures the value of progress in any form is unquestioned. This includes a short-range orientation […] concerned with quantity-economic benefits, newness, and expediency and not with long-range quality or environmental considerations (Mangun & Henning, 1999, p.10).
Nevertheless, business organizations must change the way they look at the environment, their customers, the community, and the planet in general. There will come a time when environmental degradation and human rights abuses can no longer be tolerated. The companies that adhere to sustainable development principles can easily develop a competitive advantage over others. It is the right time to learn more about sustainable development and corporate social responsibility.
Defining Sustainability
It is of crucial importance to point out the deeper meaning of sustainability. At first glance, it seems that proponents of sustainable development are actively lobbying for a halt on technological development. It seems that sustainability is equated with ecology and therefore everything man-made is considered destructive. However, a closer examination of the Brundtland Report by the World Commission for Environment and Development in 1987 will reveal that technological innovation is part of sustainable development. Consider for instance the clarification made by experts in this field who contended that there are two key concepts in sustainable development: “the concepts of needs, in particular the essential need of the world’s poor, to which priority should be given; and the idea of limitations imposed by the state of technology and societal organization on the environment’s ability to meet the present and future needs” (Gareis, Huemann, & Martinuzzi, 2009, p.2).
Environmental sustainability means the optimized use of natural resources to increase “resource productivity and minimize emissions and wastage” (Taylor, 2008, p.2). But at the same time, one has to consider social sustainability. It is the mindset that takes into account “all the interests of all the stakeholders in any development activity, not just that of the client or sponsor” (Taylor, 2008, p.2). Finally, corporate leaders must always consider the importance of economic sustainability. It is a mindset that takes into account “the environmental and social cost of human actions” (Taylor, 2008, p.2).
The importance of integrating sustainable development in corporate policy lies in the fact that business is one of the three pillars of society (Labuschagne & Brent, 2007, p. 2). Corporate leaders must strike a balance between three facets of the sustainable development framework. There must be economic sustainability, environmental sustainability, and social sustainability (Labuschagne & Brent, 2007, p. 2). With regards to economic sustainability, the CEO must determine the financial health and economic performance of the organization. It is also important to find out the potential financial benefits before finalizing the deal to accept a particular project. Thus, the company does not exist as a charitable organization but as a business that happens to consider environmental and social issues.
When it comes to environmental sustainability, the CEO through delegated authority must determine the use of air, water, land, energy, and mineral resources (Labuschagne & Brent, 2007, p. 4). For those who are clamoring for a clear focus on sustainable development, the emphasis is on the environment. But the business organization cannot afford to focus on taking care of the environment alone. Sustainable development also focuses on developing natural resources and not just to exploit it for monetary gain.
The fear that most leaders have regarding the decision to fully transform a company that used to focus only on profit to one that is more mindful of the environment and society can be linked to the need to earn money (International Institute for Sustainable Development, 1992, p.6). One of the problematic aspects of sustainable development is the added costs involved. Business leaders are forced to choose one option and when they analyze the requirements they can easily conclude that their business opportunities may be constrained (International Institute for Sustainable Development, 1992, p.6). It does not take a long time to realize that sustainable development is a terrible proposition.
The customers and other stakeholders must provide incentives for companies to engage in sustainable development strategies. Most of the time, customers unknowingly encourage firms to forego sustainable development as seen in the following statements: “Walmart is rewarded by the market for cutting costs; Costco, which offers better insurance and benefits to its workers, is penalized by the market for not cutting costs as well, and therefore not being as profitable as Walmart” (Russell, 2008, p.2). “These leaders must be convinced that there are a method and strategy that are both environmentally and socially sustainable but someone has to make it clear to them.
When it comes to social sustainability the corporate leaders must develop strategies that look into their internal human resources (Labuschagne & Brent, 2007, p. 4). Sustainable development considers the human factor in the business process. More importantly, the company does not only focus on their employees. They are also concern about the external population that is directly and indirectly affected by their business processes. Finally, the company determines the impact of stakeholder participation and the cascading effect on the macro level.
Corporate Social Responsibility
Aside from sustainable development, it is also crucial to understand the importance of corporate social responsibility. In essence, it is doing ethically accepted behavior while at the same performing at a cost-efficient level earning profit for the company. Skeptics say that it is a much-idealized view of how a multinational firm should operate and in the real world, it will not work. This was expounded by the former CEO of IBM who said:
Business usually profits best when it serves the public interest within its ability to do so. But we can never loosen ourselves from the iron law of profit … If a corporation so diverts its energies and resources as to go broke, there is nothing it can do – nothing at all – even if its claims to have a heart and conscience as big as the world (Prout, 2006, p.184).
The said executive was correct when he said that it is all right to go after the ideals of corporate responsibility but one has to learn to keep the company afloat (Prout, 2006). Giving without receiving is not the best business strategy available because corporate leaders must continually take care of the bottom line. In the case of bankruptcy, the company’s ability to goodwill not be sustained and everything that was done in the past is in vain (Prout, 2006).
A more balanced view perhaps was provided by advocates of corporate social responsibility who coined the phrase, “Doing the most good for your company and your cause” (Kotler & Lee, 2005, p.10). Carly Fiorina of Hewlett-Packard asserts that more and more organizations are experiencing a paradigm shift, “…that cutting-edge innovation and competitive advantage can result from weaving social and environmental considerations into the business strategy from the beginning” (Kotler & Lee, 2005, p.12). This simply means that companies from the very beginning must already incorporate corporate social responsibility principles as part of their overall strategy. They must not treat it as a separate endeavor.
The commitment to give back to the community is easy to explain and easy to understand. When a company increases its efforts to produce safer and better quality products, a more humane way of treating employees, and a gentler way of treating the environment will generate positive reviews for the company (Kotler & Lee, 2005). In an interconnected world made possible by social networking sites and enhanced telecommunication capabilities, it is easy to destroy the reputation of a company that violates corporate social responsibility guidelines.
A more sophisticated view regarding sustainability is the Triple Bottom Line Approach (Gareis, Huemann, & Martinuzzi, 2009, p.3). It is comprised of performance measurement of enterprise with a separate focus on the economic, social, and environmental performance of the organization that is topped by a social and economic accounting and reporting (Gareis, Huemann, & Martinuzzi, 2009, p.3).
The core principle came from Gro Harlem Brundtland, Norway’s Prime Minister in the late 1980s who asserted that “growth needs to take place on the one hand while acknowledging that it must also be restrained on the other” (Taylor, 2008, p.2). The restraint on growth can take several forms such as a) social efficacy and conscience; b) environmental reality; and c) economic necessity (Taylor, 2008, p.2). Another way to express this principle is through the following assertion: “For the business enterprise, sustainable development means adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today, while protecting, sustaining and enhancing the human and natural resources that will be needed in the future” (Labuschagne & Brent, 2007, p. 2).
Sustainability in Project Management
Experts in the field of sustainable development made an interesting argument when they said that they consider projects as temporary organizations (Gareis, Huemann, & Martinuzzi, 2009, p.3). They even went further in their declaration that sustainable development and project management are related (Gareis, Huemann, & Martinuzzi, 2009, p.3). Sustainability can be linked to project management (Silvius, Brink, & Kohler, 2009). However, it must be made clear that the project manager will have to change perspective when he or she accepts a project with a sustainability challenge (Silvius, Brink, & Kohler, 2009). Sustainability in project management has a simple framework. It is to adopt environmental policies appropriate to the project (Taylor, 2008, p.1).
It has been made clear that the pressure for companies to incorporate the principles of sustainable development into policies and activities extends to project management. Nevertheless, the current project management frameworks “do not effectively address the three goals of sustainable development” (Labuschagne & Brent, 2007, p. 1). The three goals of sustainable development are social equity; economic efficiency; and environmental performance (Labuschagne & Brent, 2007, p. 1).
It is already a well-known fact that “companies are increasingly accountable for the impacts of an implemented project on the society, environment, and economy long after the project has been completed – beyond the normally considered project life cycle” (Labuschagne & Brent, 2007, p. 4). There are many reasons why it is prudent to develop sustainable development strategies around the concept of project management. First of all, it is time to change the mindset of corporate leaders that the concept of project management has evolved in the 21 st century. Secondly, it is more practical and efficient to develop sustainable development strategies around a particular project. It is easier to monitor and study as opposed to transforming the whole culture of the organization.
It can be argued that most managers have an outdated view of this management tool when they should realize that “projects today exist in an environment of globalization, free markets, borderless worlds, mobile capital, international benchmarks and momentous advances in technology and communication” (Silvius, Brink, & Kohler, 2009, p.4). Another major reason why companies should begin at the project management level when it comes to integrating sustainable development strategies is explained in the following commentary:
While business traditions seek precision and practicality as the basis for its planning efforts, sustainable development is a concept that is not amenable to a simple and universal definition. It is fluid and changes over time in response to increased information and society’s evolving priorities. The role of business in contributing to sustainable development remains indefinite. While all business enterprise can contribute to its attainment, the ability to make a difference varies by sector and organization size (International Institute for Sustainable Development, 1992, p.2).
Even if sustainable development is a new concept in the field of project management, business leaders must strive to gain sustainability in the product of the project and in the process of delivering the product (Turner, 2010, p.2). Project management can be enhanced with the utilization of a sustainable business concept called value management or VM (Abidin & Pasquire, 2007). The power of VM to change transform sustainable development strategies lies in its ability to bring together different stakeholders and allow them to participate in the process. In a typical VM meeting, there are decision-makers such as clients and client representatives (Abidin & Pasquire, 2007). There are also representatives of the company as well as other stakeholders. In this type of meeting the company can create a project management framework that suits the needs of the clients.
Using VM and sustainable development the project manager can find ways to integrate sustainability issues into the design of the project. By involving the clients the project manager creates a more proactive decision-making process. A project manager can convince clients that there can be a balanced solution to business needs (Abidin & Pasquire, 2007). At the same time, clients can provide inputs that can help project managers develop solutions without compromising the high standards set by clients. It is also possible for clients to make concessions for the sake of corporate social responsibility.
A project manager must consider the importance of selecting team members. Project managers must incorporate sustainability criteria in selecting contractors, suppliers, and specialists (Taylor, 2008). This is linked to the assertion that “sustainability in project management is about considering the full life-cycle of the project” (Silvius, Brink, & Kohler, 2010, p.6). It starts from pre-feasibility to construction and finally to phase-out and disposal (Silvius, Brink, & Kohler, 2010, p.6).
The Maturity Model
Although there is a strong clamor for companies to adhere to the principles embodied in sustainability development, it can be argued that there is a great deal of misunderstanding regarding this subject matter. The explanation concerning sustainable development may sound impressive from the point of view of politicians and businessmen, but for project managers, the concept regarding sustainable development is vague and cannot be translated to a working framework (Labuschagne & Brent, 2007, p. 2). There are over 100 definitions of sustainability and sustainable development (Labuschagne & Brent, 2007, p. 2). Even if there is an agreement regarding the three pillars of sustainable development – social, environmental, and economic – it is time to develop a model that project managers can use (Labuschagne & Brent, 2007, p. 3).
There has to be a more practical approach when it comes to creating a useful framework when it comes to sustainable development. As early as the 1990s, leadership experts already pointed out the obvious: “If sustainable development is to achieve its potential, it must be integrated into the planning and measurement systems of business enterprises … for that to happen, the concept must be articulated in terms that are familiar to business leaders” (International Institute for Sustainable Development, 1992, p.1).
It is important to provide them examples of how sustainable development can be achieved without radically altering the core strategies of the business process. In many sustainable practices adopted by multinational companies, the environment benefited from minor tweaks in the system as seen in the following anecdote:
Many executives have demonstrated that pursuing sustainable development strategies makes good business sense. For example, a 3M manufacturing plant scaled down a wastewater treatment operation by half, simply by running cooling water through its factories repeatedly instead of discharging it after a single-use. Meanwhile, Dow’s ‘Waste Reduction Always Pays’ program, which began in 1986, has fostered more than 700 projects and saved millions of dollars a year. And in a Westinghouse metal finishing factory in Puerto Rico, the company reduced ‘drag out’ – the contamination accidentally carried from one tank to another – by 75% simply by shaking the tank to remove solids before releasing the chemical to the next tank (International Institute for Sustainable Development, 1992, p.4).
It is of crucial importance to consider the following: a) project objectives; project scope and schedule; project resources, costs, income, and risk; project organization; project context; and design of the project management process (Turner, 2010, p.3). Project management is a tool that must be leveraged to create sustainable development within the organization.
Sustainability and Enexis
The corporate leaders at Enexis, together with their employees and staff unexpectedly learned more about project management. Although the company and its people were well aware of the importance of project management and how to use it as an effective tool in achieving corporate goals, their awareness regarding this management tool was at an all-time high in 2009. It was the time when the company began to cut its ties from Essent Network. Nevertheless, project management was not used for sustainable development. It was used to pave the way for a smooth transition into independence (Grevelman & Kluiwstra, 2010).
Aside from using project management tools as a way to help them deal with the changes within the company, Enexis used the same strategy to monitor customer satisfaction with regards to the services that they provide for their clients. Nevertheless, Enexis demonstrated its commitment to sustainable development through the use of project management. However, it must be made clear that the company initiated projects that led to sustainable development but the integration of sustainable practices into their project management protocol seems vague.
One of the more important projects concerning sustainable development was started in 2010. This was known as the Mobile Smart Grid. It is a network of smart charging stations that enable the efficient and convenient recharging of electric cars (Enexis, 2011). Aside from the convenience, it brings to electric-powered cars, the Mobile Smart Grid provides information that would help in choosing the right time to charge the car to avoid peak levels of demand from consumers. Also, the “smart grid” was designed to handle future innovations in energy production. The company stated that in the future their customers are not only consumers but they are also producers. Thus, there is a need to develop a system where energy can flow in two directions (Enexis, 2010). However, there is no clear explanation as to how this can happen.
The more ambitious projects trumpeted by Enexis are still on the drawing board. Construction may have started but it is not yet completed. The same thing can be said about the Mobile Smart Grid. Nevertheless, it is major evidence of the commitment of the company when it comes to sustainable development. However, stakeholders must continually monitor the progress of this project. At the same time, Enexis must update the general public regarding the roadblocks to this project. The reasons given for the delay provides a glimpse into the conflict between the need to make a profit and the need to develop sustainable practices.
Another major project is the installation of “smart meters” (Enexis, 2010). These devices “collect data about the electricity usage of households, allowing advice to be given on energy savings and – in the somewhat longer-term – intelligent control of electricity supply” (Enexis, 2010, p.44). However, smart meters require additional costs to the company and the consumers. These devices are not part of the original system used by Enexis and therefore only new users can avail of the potential benefits of the said technology. Stakeholders must continue to monitor the progress of this project. It is important to find out the reasons for the delay in the implementation process and if all households and businesses can benefit from this new technology. It is also important to find out if the customers will bear the additional costs of the said energy-saving device.
The third major project that focuses on sustainable development is the partnership with Attero, a company that produces green gas. In the case of Attero, the green gas is biogas produced through a fermentation process. In this partnership, Enexis provided the biogas pipeline that enables farmers to feed their biogas so that it can be redirected to consumers. However, the expansion of the program requires government subsidies and the company made it clear that without these subsidies it would be difficult to increase the area of coverage (Enexis, 2010). The biogas project is another example of high-profile projects that are still in construction or stuck on the drawing board. The general public must make Enexis accountable for unfinished projects. There must be a way to report progress and why hurdles exist for a project that promises to help reduce harmful emissions of toxic gases to the air.
It was pointed out earlier the significant projects undertaken to demonstrate Enexis’s commitment to sustainable development. But according to one of their top officials, the company is not only concerned with the implementation of expensive projects that can contribute to a significant improvement of the environment. It is also concern with changes that affect the internal workings of the company. One of the best examples is the policy concerning a sustainable fleet. The company used a type of vehicle that promises to lower the consumption of fuel (Enexis, 2010). At the same time, the company used 3 electric scooters and 16 electric cars (Enexis, 2010). In the year 2011, the company wanted to add 23 electric cars and 50 vehicles that use green gas or natural gas (Enexis, 2010). The company must be commended for its efforts in reducing the number of pollutants to the atmosphere. However, a quick comparison to the number of employees and the number of electric cars provides a clear picture of how Enexis has lagged when it comes to overhauling their fleet.
According to top officials of Enexis the company one of the major steps towards sustainability in project management is to make sure that the materials used for the project came from manufacturers that adhere to sustainable practices (Grevelman & Kluiwstra, 2010). Enexis tries to find out how these materials are produced. At the same time, the suppliers are scrutinized because Enexis wants to find out if they are certified by agencies that use corporate social responsibility as one of their standards (Grevelman & Kluiwstra, 2010). However, not much is known when it comes to non-compliance.
Aside from high-profile projects that benefit the external environment, the company is serious about changing the corporate culture within the company. Enexis made sure that the employees contribute to sustainable development in their little way. One notable example is a policy that encourages employees to use double sides printing. It may not be as significant as reducing the dependence on fossil fuel but in the long-term, the reduction in the consumption of paper helps in saving more trees that should have gone to the paper mill. The more trees are left untouched the greater is the capability of the environment to deal with the negative impact of climate change and natural calamities such as flash floods.
Another important policy is the directive that managers and employees must use digital technology and video conferencing (Grevelman & Kluiwstra, 2010). Digital technology leads to a paperless system of information and knowledge management. Once again the company contributes to the preservation of the planet’s ecosystem by reducing the number of trees cut down to produce paper.
Another important evidence to support its commitment to sustainable development is the policy that company employees must use video conferencing. In the old way of doing things, Enexis’s employees have to travel across the country to discuss an issue with team members or clients. By using video conferencing the company does not only save time and money but also reduces the need to burn fossil fuel for their transportation needs. It is important to point out that this policy also covers project management teams. This is one tangible proof that the company attempted to integrate sustainable development strategies into its project management framework.
In their offices, the company tries to use furniture that came from renewable sources. They also use cleaning agents that are less harmful to the environment. More importantly, the company uses “smart measurement systems” (Grevelman & Kluiwstra, 2010). This is a technology that enables Enexis to monitor the consumption of energy within the company. It also helps educate their employees regarding a more efficient way to use energy. Another way to increase awareness of sustainable strategies is to compel employees to check their tire pressure. They learn to value the importance of having correct tire pressure to have a more efficient way of conserving fuel.
Steps were also taken to deal with the social aspect of sustainable development. This action started at the company level where it was noted that the turnover of employees is very low (Grevelman & Kluiwstra, 2010). The company is proud to announce that they take care of their employees (Grevelman & Kluiwstra, 2010). A top official from the company disclosed that full-time, part-time, and even temporary workers receive benefits from the company (Grevelman & Kluiwstra, 2010). The employees at Enexis are covered by collective bargaining agreements (Grevelman & Kluiwstra, 2010). The company earned the distinction as one of the best places to work in the Netherlands. In the Best Employer Survey Intermediary of 2009, the company was voted as having one of the best working conditions and employee engagement in the whole country (Enexis, 2011). It is important to highlight this feature of the business operation because one of the crucial facets of sustainable development concerns people and not just the environment.
Concern for their employees was very much evident in 2010 when the company decided to move all smoking areas outdoors (Enexis, 2010). As a result, workers were further discouraged from smoke, because it would require greater effort to walk from the office building to the designated smoking areas. There was also a program that encouraged preventive medical examinations (Enexis, 2010). This measure is an example of sustainable development because when workers are sick their performance is affected.
The company has a strict policy when it comes to human rights abuses. The company cannot transact with suppliers that use child labor. However, Enexis believes that it is impossible to carefully scrutinize all suppliers if they adhere to the same principle. Enexis is not only concerned with the external environment when it comes to human rights issues. Their employees are entitled to see a counselor if they believe that they are being discriminated against (Grevelman & Kluiwstra, 2010). The company readily admitted that a great deal of work is needed to comply with international standards when it comes to the prevention of human rights abuses especially when it comes to third-party suppliers.
Analysis of Data
The company has made known its desire to incorporate sustainable development into their core business strategies. However, the company leaders are still aware of the numerous challenges that are involved in the complete integration of sustainable development and the long-term goals of the organization. One of the major issues concerns the cost of such an endeavor. According to one of their top officials, the benefit of video conferencing is clear however, an enhanced sustainable practice requires decentralized video conferencing in every laptop (Grevelman & Kluiwstra, 2010). This policy means that the company has to invest more to upgrade the IT capability of all employees. This move is something that cannot be accomplished without added expenses and training.
One of the top officials of Enexis readily admitted that the company has a long way to go when it comes to overhauling its strategies and policies about sustainable development (Grevelman & Kluiwstra, 2010). The said official said that when it comes to the triple-bottom-line of social, environmental, and economic sustainability, Enexis still leans towards the economic aspect of project management. Based on this disclosure it was discovered that aside from profitability the organization is also a great concern when it comes to the working environment. The corporate leaders at Enexis are concern about the comfort and satisfaction of their workers.
One of the officials of the company readily admitted that not much thought was given to training product managers when it comes to sustainable development strategies (Grevelman & Kluiwstra, 2010). Another conflict when it comes to sustainable development and competitive forces in the market can be seen in the difficulty of hiring personnel based on where they live. In an ideal situation, the company is encouraged to hire workers that live nearby. This action saves on fuel and creates a minimal carbon footprint as opposed to a worker that has to commute long distances to go to work every day. However, Enexis understands that this is not a practical approach. The company hires people based on their skills and experience. The same thing can be said when regards to choosing appropriate suppliers. The organization does not choose suppliers based on their location.
It is now time to evaluate Enexis’s commitment to sustainable development using the maturity model developed by researchers (Silvius & Schipper, 2010). In the said maturity model there are 31 questions but it is practical to focus on a few questions to gauge how Enexis was able to integrate sustainable development strategies into their various projects.
With regards to the question regarding the position of sustainability in the strategy of the organization, it is important to take a closer look at some of the major projects undertaken by Enexis since 2009. Using the three notable projects such as the Mobile Smart Grid, the use of “smart meters” and the creation of the biogas pipeline provide enough evidence that Enexis developed a strategy that mentions a wise use of natural resources and commitment to social responsibility. However, it must be pointed out that most of these high-profile projects are still on the drawing board.
With regards to the question of sustainability reporting, it has been made clear that the company wanted various stakeholders to know the steps taken to move the company to a more sustainable future. The commitment to report the progress of the project with regards to conformity to sustainable standards can be seen in the official reports that can be accessed through their websites and other public documents. Enexis also said that it utilizes the Global Reporting Initiative guidelines to figure out their compliance. In this regard, Enexis claimed that they have complied on more than 20 performance indicators and has a GRI B standard (Enexis, 2010, p. 112). The company can improve its ranking based on the GRI guidelines.
With regards to the question regarding the type of benefits recognized in the business case of the project, it can be argued that benefits are highlighted based on cost savings and reduced use of resources. This was made evident with the enhancements made to their transportation requirements. At the same time, benefits are recognized based on the improved business process. This was made clear with the use of “smart meters” and the Mobile Smart Grid. Finally, the company recognized benefits in terms of extra revenues from innovative products and services. This was made evident in a partnership that enabled Enexis to supply biogas to their clients.
With regards to the question regards to managerial flexibility, it can be argued that the projects were designed with little room for changes. Based on an overview of statements made by top officials of the company, and the overall pattern of behavior of the organization, it is clear that Enexis is focused on the economic aspect of sustainable development. Thus, projects were designed to create profit and not just to help the environment.
With regards to the question regarding project reporting, it can be said that Enexis does not allow for a great degree of transparency when it comes to their projects. The project does not formally report progress in terms of sustainable development. Enexis is content with the idea that its commitment to sustainable development has been made known but the organization is not willing to inform the general public regarding the detailed steps taken to shape the project in conformity to sustainable development standards.
With regards to the question regarding investment evaluation, the company has made a point to go beyond the need to make a profit. However, it is not accurate to say that projects are evaluated and selected predominantly based on sustainable development. Nevertheless, the company has proven its commitment to consider both long term and short term perspectives in considering the economic, social, and environmental aspects of the project.
With regards to the question of procurement, Enexis made it clear that suppliers were chosen based on cost-efficiency and not only on principles regarding sustainable development. The company prefers to use suppliers with the ability to help Enexis deliver products and services more sustainably. But this is not always the case. Nevertheless, the company has expressed its commitment to never partner with a supplier that has committed human rights abuse such as the use of child labor.
With regards to the question regarding the procurement of materials, the company expressed its desire to use materials based on reuse capabilities and value. This commitment was demonstrated in the use of cables that can last for up to 50 years. However, the company made the disclosure that materials are mostly chosen based on functional requirements and their costs.
With regards to the question of energy, the company has demonstrated its commitment to promote the smart use of energy. Energy-saving equipment is used when appropriate. Steps were taken to reduce the consumption of energy. This was made evident in the use of “smart meters” and the use of electric cars and other vehicles that use green gas. The conservation and reduced use of energy consumption have become one of the parameters of the design of the project. However, these changes are not yet implemented on a wider scale.
With regards to the question of water consumption, pollution, and waster, Enixis has demonstrated its commitment to reduce consumption and its negative impact on the environment. The company released information regarding their “condition-based maintenance and a risk-based program for the phased replacement of non-maintainable assets” for the detection of leaks (Enexis, 2010, p.68). It is a conscious effort to reduce the impact of the company in terms of releasing unwanted substances into air and water.
When it comes to the question of travel the company used a two-pronged approach. First of all, they used cars that run on renewable energy sources. Not all their vehicles run on green gas but they strive to upgrade their fleet so that it adheres to sustainable development standards. Secondly, video conferencing is the policy of the company when it comes to the need for face-to-face interaction. They do not need to travel because video conferencing can deliver the same results.
When it comes to the question on project reporting there is no hard evidence to support the assertion that Enexis conducts regular progress reports. They did not release progress reports to third party agencies. If there are progress reports these remain confidential and accessible only to the managers and corporate leaders of Enexis.
With regards to the question of labor practices and decent work, it was mentioned earlier that the company was voted as one of the best employers in the Netherlands. It seems that the workers are satisfied with the benefits that they are receiving from the company. At the same time, corporate leaders at Enexis are not resting on their laurels because they introduced a remuneration policy that “increased flexibility and more rapid growth within income categories” (Enexis, 2010). The company also instituted policies to take care of the health and welfare of the employees.
With regards to the question of training, education, and organizational learning, the company has shown its pledge to continuously upgrading its leadership college (Enexis, 2010, p.62). The company has made it clear that they want to improve the capabilities of their workers. However, no program exists that would cater to the needs of the community in terms of training, education, and development of stakeholders.
With regards to the question of human rights, the company made it explicitly clear that they will not tolerate human rights abuses especially when it comes to child labor. However, the company also conceded that employees did not receive any form of training on how to deal with various aspects of human rights issues (Enexis, 2010, p.112). Therefore, an employee or project manager may transact with a supplier that violated human rights principles and may not be able to discern that violations have occurred.
With regards to the question regarding society and customers, the company insists that they are aware of the importance of corporate social responsibility. This desire to design projects that translates to social responsibility towards external stakeholders can be seen in the way Enexis carefully evaluates the suppliers. But more importantly, some of the major projects were designed to demonstrate social responsibility such as the creation of the Mobile Smart Grid.
With regards to the question of bribery and anti-competitive behavior, there is no indication that Enexis has considered the importance of this issue. A probable explanation is that there is no need to worry about bribery and anti-competitive behavior because the rule of law is a significant characteristic of Dutch society. At the same time, company leaders are aware of the consequences if the government discovers that Enexis violated regulations regarding anti-competitive behavior.
Discussion and Limitations
It has to be made clear that although Enexis was unbundled from Essent Network, this organization is still a dominant force in the Dutch energy sector. The number of employees as well as the scope of its responsibilities attested to the fact that Enexis is a big company. Thus, it is not surprising to discover that on the issue of corporate social responsibility and Triple Bottom Line, the company tends to focus on the economic aspect of the business.
The energy industry is a lucrative business and investors who pour money into such type of commercial undertaking expect to see a significant return on their investment. Furthermore, the energy industry requires huge capital infusions. In other words, a significant amount of money is sown into a project and it may take a long time before investors can make money out of such an undertaking. It is therefore interesting to point out that even with the challenges faced by Enexis, the company made known its commitment to sustainable development.
Although Enexis has made declarations regarding its awareness of corporate social responsibility and sustainable development, there is still a long way to go before the company can truly claim full integration of sustainable development principles into their core business strategies. Enexis claimed that they have complied on more than 20 performance indicators and has a GRI B standard (Enexis, 2010, p. 112). The company has to work hard on improving its overall rating.
An overview of their performance will reveal that Enexis wanted to accomplish greater things when it comes to sustainable development but are aware of the various limitations imposed on them by shareholders and the sheer costs of adhering to sustainable development principles. Take for example the need to integrate sustainable development strategies and the project management framework. For this to happen the company has to invest in training project managers to understand the different facets of sustainable development. Consider for instance the need to learn more about human rights abuses at the supplier end of the business process.
A full commitment to sustainable development requires a drastic reduction in fossil fuel emissions but this may hamper the efficiency of the workers. There is a great deal of difference between using a conventional vehicle and a scooter. The speed and efficiency of an ordinary car are far greater than the one that runs on solar power and biogas. There will come a time when engineers can solve this problem and bridge the gap between renewable energy sources and fossil fuels. However, in the present time, world-class companies like Enexis have to consider cost-efficiency over sustainable development.
Enexis has to be commended for its effort to adhere to sustainable development principles. The company has to e commended on its drive to promote corporate social responsibility. Nevertheless, there is much more than the company can achieve if more resources are redirected for sustainable development efforts. The corporate leaders at Enexis were on the right track when they attempted to increase awareness regarding sustainable development. But Enexis must go to the next level and this requires more investment in their workforce so that they can contribute to sustainable development. The project managers must be well-trained when it comes to recognizing human rights abuses. Project managers must learn to determine violations in sustainable development standards according to GRI guidelines. It is also important to point out that Enexis needed to work harder to fully integrate sustainable development strategies into its project management framework. Project managers must undergo rigorous training to understand the different facets of sustainable development. The company must take drastic action to force suppliers to adhere to their standards regarding sustainable development.
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The role of project management in the success of green building projects: Egypt as a case study
- Heba Farouk Abdelkhalik 1 &
- Hisham Hussein Azmy 1
Journal of Engineering and Applied Science volume 69 , Article number: 61 ( 2022 ) Cite this article
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Metrics details
Sustainability and project management are two trends that have taken global interest in the last decades due to their significant role in various fields of life. However, these two topics have rarely been addressed in one study or framework. As sustainability and environmental issues are not specifically or systematically considered in most major project management frameworks such as the Project Management Body of Knowledge (PMBOK), Individual Competence Baseline (ICB), International Organization for Standardization (ISO 21500:2012), and so on. Furthermore, sustainability applications in the construction field under the term “green buildings” are facing various types of obstacles that obstruct the pervasion of this type of construction in an adequate and required way. Some of these obstacles have been addressed in recent studies with suggested solutions, but the role of project management in overcoming or even mitigating the risk of these obstacles was almost absent in most of these studies. Therefore, this paper attempts to observe the most important obstacles facing the application of sustainability in the construction field and taking the green construction situation in Egypt as a case study. In addition, this paper aims to investigate the role of project management in green building projects’ success, through project management best practices’ applications to overcome the main reasons that obstruct the green building projects movement. The results showed that there is a lack of management methods that address sustainable construction projects. In addition, there is no clear methodology governing the green building management process. Also, the unspecified responsibilities between stakeholders in green building projects lead to difficulties in managing and implementing green buildings. However, some defined obstructions could be overcome by project management’s best practices and methods.
Introduction
The trend towards sustainability and a better life for future generations is one of the global trends that has received great attention in recent times, especially for those interested in the field of construction. Urban and industrial progress, accompanied by greater consumption of natural resources, reflects negatively on the ability of the planet to renew its resources, and therefore exposes future life to danger. The latest events around the world-like forest fires, floods, and torrents due to global warming, encourage the global interest in sustainability as one of the means to address this phenomenon. And the high cost of oil energy and its negative impact on the environment have prompted the search for alternative sources of energy and developed concepts that aim to reduce dependence on oil energy and rationalize the use of coal and gas for power generation.
A few years ago, concepts such as “eco-friendly building” and “green architecture” emerged within the framework of sustainable development that goes beyond the narrow economic outlook for rapid profit and the aspiration to conserve natural resources and allow them to be exploited for longer periods to serve future generations. The main feature that distinguishes green buildings or ecological buildings from the remaining buildings is that they do not disturb the ecological balance and they aim to produce structures that will benefit both nature and human beings [ 1 ].
Green building applications are facing a lot of challenges on more than one level. In this paper, green building applications at the project level were considered. The lack of green buildings in developing countries and the gap between the percentage of the registered projects and the certified projects from green building rating systems in countries like Egypt indicates that there are some obstacles facing this kind of project in all project phases. Some previous studies addressed these obstacles, and some of them provided suggested solutions at governmental and professional levels. But a few of them attempt to find a practical solution from project management and the project manager’s point of view.
This paper aims to investigate the obstacles that face green building applications in developing countries due to the size of the challenges that face these projects there and takes Egypt as a case study. Furthermore, the study observed challenges facing project managers or green building administrators in this project through a questionnaire and online interviews with them. Finally, the study attempted to find solutions through project management best practices to overcome the main reasons that impede the green building movement in developing countries like Egypt.
Literature review
Sustainability and green architecture.
Sustainability and a better life for current and future generations have captured global attention in recent decades. In 1972, the term “sustainability” was developed for the first time at the world environmental conference in Stockholm with the Club of Rome through the discussions within the framework of “eco-development” [ 2 ]. In 1987, the World Commission on Environment and Development (WCED), published a report entitled “Our common future. In this report, “sustainable development” was defined as development that meets the needs of the present without compromising the needs of future generations [ 3 ]. A broader concept of SD is based on the integration of three dimensions: economic, environmental, and social [ 2 ], constituting the sustainability known as the Triple-Bottom Line. In 1997, John Elkington, in his book “Cannibals with Forks,” coined the term “triple bottom line” (3BL), which refers to economic prosperity, environmental quality, and social justice. Also, knowing the three pillars of sustainability, or triple P, as follows:
Profit—The first bottom line is the traditional measure of financial performance—How responsible has the company been in terms of assuring its competitive prosperity?
People—The second bottom line is the measure of a company’s social account—How socially responsible has the organization been in terms of its impact on the quality of life of the individuals it affects?
Planet—The third bottom line is the measure of the company’s environmental account—How environmentally responsible has it been in terms of its impact on natural ecosystems? [ 4 ].
Sustainable development insights have been applied in several fields in our life, but the application of SD in the construction field creates a type of building under the term “Green Building”. According to the World Green Building Council, a “green’ building is a building that, in its design, construction, or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment. Green buildings preserve precious natural resources and improve our quality of life” [ 5 ].
The pervasion of the concept of sustainability and green architecture in the world has been accompanied by the so-called “Rating Systems” programs, which act as arbitrators on whether a building is a “green building” or not, and how green it is. Furthermore, there is an active role played by these programs in the marketing of the green architecture concept around the world by working on the spirit of competition in the design, construction, and operation of buildings. In addition, building owners sought to obtain certificates from these global evaluation programs to prove that their buildings are subject to the principles of green architecture and compete at the highest level in the evaluation.
The most famous and widely used rating system is the American system (Leadership in Energy and Environmental Design (LEED)), which was introduced in 1998 by the US Green Building Council (USGBC). In addition (Building Research Establishment’s Environmental Assessment Method (BREEAM)) system in the UK is the world’s first green building assessment system.
- Project management
With the increasing complexity of projects in general and construction projects in particular, the need for a holistic system to manage all the project’s resources, stakeholders, documents, finance, requirements, and solve all issues that come up with the project’s progress. According to the American Project Management Institute (PMI), project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Furthermore, project management enables organizations to execute projects effectively and efficiently through the appropriate application and integration of the project management processes identified for the project [ 6 ].
In the 1960s, Dr. Martin Barnes introduced the iron triangle (also called the triple constraint), which refers to the idea of being on time, within budget, and according to specifications. The triple constraints were the indicators of the project’s success for decades until sustainable projects started to pop up, and other constraints have been raised as environmental and community dimensions [ 4 ]. The triple P took attention to a different project’s success dimensions that were not realized before, along with the iron triangle, or triple constraint cost, time, and quality.
Integration between sustainability and project management
Project management and sustainability are two topics rarely integrated into one study or a framework, although project management could be a means of positive influence on the integration of sustainability dimensions into projects [ 7 ]. Recently, a few studies realized the role of project management in sustainability and green building’s success; however, the existing studies are still insufficient [ 8 ]. In addition, most major project management frameworks, such as PMBok, ICB, ISO21500:2012, and Prince2, did not take sustainability and environmental issues into consideration [ 9 ]. Furthermore, it is noticed that most previous studies care about studying sustainable management and environmental management, but few of them address project management and its great role in sustainable and green architecture.
According to Wu and Low [ 10 ], the credits related to project management in some of the rating systems (LEED2.2, Green Globes, BCA Green Mark 3.0), take around 20% of the credits in these rating systems. Furthermore, green buildings must be viewed as a comprehensive solution that integrates sustainable principles throughout the project life cycle, from project planning to design, construction, and operation, rather than simply as a collection of green materials, technologies, and other environmentally friendly innovations [ 10 ].
Green buildings are often developed according to rating system guidelines, which provide guidance on measurements and can provide recognition and verification of the level of compliance [ 11 ]. Rating systems are designed to evaluate the performance of an entire building or a specific section of a building from planning, to design, construction, and operations phases. This requires a specific management system to manage all procedures and processes of the rating system, the registration and documentation of credits, the interactions between the various stakeholders in the project, the responsibilities of everyone on the project team, resources, cost, and time management.
It is worth mentioning that the management systems of these projects must have a specific nature that is adaptable to the project requirements and sustainable goals. Recently, there are few attempts to develop frameworks or methodologies for sustainable projects. However, until now, most of those attempts have not yet materialized from being studies and have not been applied to green building projects in a significant way. For example, Marcelino-Sádaba et al. [ 8 ] developed a framework in their study published in 2015 to help project managers deal with sustainability projects based on four dimensions: products, processes, organizations, and managers [ 8 ].
Globally, there is the methodology of (Project Integrating Sustainable Methods (PRISM)) which was introduced in 2013 by the international organization of green project management (GPM). PRISM is a structured methodology for sustainable—“Green Project Management”, which is based on a series of standards and incorporates their use in the standard ISO 21500:2012 “Guidance on Project Management” [ 12 ]. But this methodology is not yet experienced in a significant way with a lot of applications as well as the studies that address this methodology are very rare. In addition, the methodology is totally not remedied at the local level according to the applied questionnaire in this study.
Another perspective or level that addresses the integration between sustainability and project management is the organizational level. Sustainable project management is an integral part of the sustainable management of organizations. Where organizations interested in sustainable development, determine clear sustainable goals and issue sustainability reports in which they define their vision and future plans towards sustainability. In order to achieve organizations’ sustainable goals, organizations define internal practices and projects either in the form of individual projects, programs, or portfolio aims to achieve the defined sustainability goals. Naturally, not all sustainable projects are implemented due to the sustainable organizations’ strategies, as there are a lot of sustainable projects that have been implemented due to marketing considerations or to go with the new trend, especially in the construction field. However, the projects that are achieved based on clear organizations’ goals and visions from a sustainability perspective are most likely to have a good chance for continuity and improvement.
Although there are numerous studies on energy management and environmental conservation via ISO 50001 and ISO 14001, a holistic method for the management of sustainability in the context of an organization is still lacking [ 13 ]. Moreover, there is a gap between organizations’ perception of the importance of sustainable management and its actual use in practice [ 14 ]. However, there have been some attempts recently in some studies to integrate the management methods with sustainable principles with the aim of introducing organizational sustainable management. Mustapha et al. [ 13 ] proposed the development of an integrated green management framework called the Sustainable Green Management System (SGMS). A systematic, integrated, and efficient approach for collecting, monitoring, analyzing, and managing information and resources. SGMS leads to sustainable organizations, saves resources, removes significant redundancies, promotes cleaner production, and enhances the profitability and efficiency of an organization [ 13 ].
Another important aspect in addressing the integration between project management and sustainability or green buildings is the contribution of the project managers to the success of sustainable projects. According to Hwang and Ng [ 15 ], many studies have been concerned with the efficiency of project managers to ensure the success of the project. A few of them have been concerned with the project managers’ execution of green architecture projects and the challenges they face in such quality of projects. Therefore, in their study, they identified the most important challenges facing project managers in green architecture buildings. Among them, the long period required for planning and designing green buildings; the unavailability of subcontractors, professionals, green materials, and equipment; high-cost and risk; and the lack of experience and knowledge. Hwang and Ng [ 15 ] also identified critical knowledge areas and skills that are essential to respond to the challenges. The most important knowledge areas were schedule management and planning, stakeholder management, communication management, cost management, and human resources management. In addition, the most important skills that are required to mitigate the challenges were analytical, decision-making, team working, delegation, and problem-solving skills [ 15 ].
Also, Martens and Carvalho [ 14 ] pointed out that project managers can improve their results in projects when looking at four factors, which are sustainable innovation business model, stakeholders’ management, economics, competitive advantage, environmental policies, and resource saving [ 14 ].
This qualitative exploratory research aims to define the role of project management in the success of green building applications and how it helps in overcoming the obstacles facing these kinds of buildings. For this purpose, a systematic literature review was conducted for a better understanding of the green buildings’ obstacles and challenges facing these buildings in developing countries like Egypt as a case study for some reasons as follows:
Egypt is one of the countries that suffers from a lack of energy sources, environmental pollution, the pervasion of some diseases due to this pollution, and economic problems. As the movement of sustainability and green building principles contribute significantly to solving these problems, it becomes necessary to study the reasons that prevent the pervasion of sustainability and green buildings in Egypt, find solutions, and overcome these obstacles.
Although the significant recognition of green building projects’ importance in Egypt, a very limited number of certified green building projects have been observed, principally in the national rating system GPRS.
All previous studies addressing the green building project crisis in Egypt totally neglected the role of the most important factor in project management, which led to wondering how these projects are managed in Egypt and how the cases and numbers of green building projects could be improved by a successful project management system.
Following the SLR, an online questionnaire and interviews with project managers and sustainability consultants were conducted to determine how green project buildings are managed in Egypt, a more specific ranking for the most affective challenges that obstruct green buildings in Egypt from the challenges identified previously in previous studies, and finally to determine how the green building situation in Egypt could be improved.
The questionnaire consists of 18 questions with two types of questions, open questions, and multiple-choice questions aiming to benefit from the experience of project managers and to define obstacles they faced in managing green building projects in Egypt, the main aims need to be elicited from the questionnaire as follows:
1. The main project phases that the project managers participated in and their main role in the project.
2. Are the project managers following specific management methods/methodologies to address green buildings’ unique natural and requirements?
3. Most management methodologies that have been followed in these projects and what are the most useful software programs have been used.
4. Who decides the management methods in the project and are the project stakeholders participating in choosing the way in which the project has been managed.
5. The main obstacles that project managers face when managing green buildings in Egypt.
6. The main factors which caused discrepancies between the estimated project cost/time and the final project cost/time achieved.
7. The project managers’ point of view on how management systems could be developed to be convenient for green building projects.
The target group for the study is project managers and green building consultant who have worked in certified/registered green building projects in Egypt. The method which has been used to collect data is an online survey and personal interviews by using voluntary response sampling. The total number of responses are 10 responses varies among project managers and green building consultants.
For more clarification, the research method was summarized in Fig. 1 .
Research method. Ref: Researchers
Results and discussion
Green architecture insights have appeared in Egyptian buildings since the early eras in building design considerations such as taking advantage of building location, designing buildings to overcome external environmental conditions without harming the environment, benefiting from daylight, optimizing resource use, and other environmental design concepts now adopted by green architecture. But with the passage of the ages and industrial progress, these concepts faded away and the natural solutions were replaced with artificial solutions in buildings, which led to environmental harm and natural resource exploitation.
Green architecture as a term was introduced in Egypt in the 1990s at the first symposium of “Bioclimatic Architecture”, which was held in 1996 [ 16 ]. After launching the LEED system (the most popular rating system in the world) in 1998, small steps have appeared toward this trend in this period until the first green building approval in 2010 under the LEED rating system. Following this, a few investors and developers in Egypt were interested in registering their buildings in the LEED program as a kind of marketability to keep up with the new trend.
Green building project challenges in Egypt
Sustainable construction projects known as green building projects face some obstacles and challenges with their implementation in reality. Particularly in developing countries due to certain factors that will be discussed later. In Egypt, as a case study, there are limited numbers of green buildings in the modern era which are certified by third-party or green rating systems, whether by LEED or the Green Pyramid Rating System (GPRS) the national green building rating system in Egypt). The number of buildings registered in LEED until 2021 reached 63, with only 22 certified [ 17 ]. As well as there is only one building that has gained the LEED platinum certification in Egypt. On the other hand, the application of the (GPRS) has been neglected at the level of the public and private sectors since its launch in 2011 by the Egyptian green building council. Unfortunately, there are only 5 buildings that were certified under this system [ 18 ].
Comparing the number of certified green buildings in Egypt with other countries in light of the rapid movement globally toward sustainability and green buildings, found that Egypt’s movement toward green architecture is very slow and needs more encouragement from the government and construction developers, as well as more studies of the factors leading to such delays and exploring solutions to promote strongly the application of green architecture principles.
During the last decade, local studies in Egypt focused on studying the application of green buildings, but few really addressed the main reasons for preventing the pervasion of green buildings in Egypt and the main problems that face these buildings. In this section, the reasons behind the green building crisis in Egypt will be discussed from the most important previous studies. Some studies focused on general reasons and determining the problems facing green building in Egypt are listed below:
- The absence of governmental incentives toward green building.
- High initial cost for the green building compared with the traditional type.
- Lack of design team specialists who are aware of environmental control strategies and building simulation programs to choose the optimum choices for the building’s environmental performance.
- Unavailability of the required technology for some credits.
- Lack of contractors’ awareness.
- Unavailability of recycling companies for construction materials.
- Unavailability of data about the life cycle cost of the available materials.
- Unavailability of low-emitting materials in the Egyptian market [ 19 ].
- Lack of a database related to green building materials [ 20 ].
-The unified Building Law No.119 that was released in 2008 and its executive appendix, which was released by the Ministerial decree No. 144 in 2009, were not formulated having green concepts as a governing parameter [ 21 ].
On the other hand, there are studies that point to some reasons behind the inapplicability of the Green Pyramid Rating System (GPRS) in the Egyptian environment. For instance, the lack of knowledge or awareness by architects towards certain elements, principles, or even criteria when it comes to the GPRS. Also, the failure to adapt to the local context to cultural issues, resources, priorities, practices, and economic challenges.
According to Attia and Dabaieh [ 22 ], GPRS requires compliance with Egyptian and American codes at the same time, which has led to inconsistencies in some cases and requires a lot of effort. Furthermore, there are missing guidelines and documentation methods in some credits, for example, indoor air quality and material credits. In addition, GPRS ignores the local Egyptian built environment, for example, local building techniques, vernacular architecture, heat island effect, informal housing, natural ventilation and ceiling fans, solar water heating, Cairo air pollution, occupational behavior, health, Egyptian society, and economic aspects [ 22 ].
Furthermore, some studies highlighted the lack of a database related to (GPRS) certified materials that can be used as a benchmark for assessment and as a guide for the user. In spite of that, there are currently over 120 international green labeling programs for building materials worldwide [ 19 ]. As well as the lack of comprehensiveness in achieving the remains of social, cultural, and economic sustainability goals [ 23 ].
All the mentioned studies did not recognize role of project management, along with project manager competency, and how a poor management system could affect the successful implementation of green building projects anywhere, particularly with regard to overcoming the extracted obstacles, and helping in implementing successful green building projects as the previous studies emphasized as mentioned in the literature review.
From the systematic literature review, the research reached an important hypothesis, which is that green building situation in Egypt could be improved and go faster in steady steps by developing and improving the project management methods used in implementing the green building projects. Therefore, to experiment research hypothesis, it is needed to know how green building projects are managed in Egypt and study the management methods used in these projects.
The role of project management in green building project success
This section of the study aims to investigate how green-building projects are managed in Egypt. Moreover, discover if the way of managing these buildings affects project success in achieving the sustainability goals and whether it is among the factors leading to the obstruction of the construction of green buildings in Egypt. Furthermore, the study investigated how to overcome the obstacles identified in the research problem by project management. Accordingly, an online questionnaire and interviews were conducted with Egyptian project managers and green building administrators (with experience of 3 to 20 years in green buildings) who worked in green buildings in Egypt, whether registered or certified buildings, under LEED or GPRS. The results came as follows:
There is confusion between the roles of project managers and green building consultants in most cases, while the responsibilities of each of them are also unspecified.
In some cases, the project manager is not involved in the green building certification process and all responsibilities related to the green building process, and rating system certification is the green building consultant’s responsibility.
Involved personnel presented themselves as project manager and green building consultant at the same time, in spite of the fact that their responsibilities did not cover all aspects of project management. This means that there are some neglected management areas in the projects due to multiple responsibilities.
The project managers/green building consultant most involved in green building projects is at the construction stage, followed by the design development, then the schematic design and bid stage, then the conceptual design, and finally in the pre-concept design stage as shown in Fig. 2 .
The main role of the project manager in the green building project is sustainable management and then selection of rating system credits and verification of rating system achievement of prerequisites and credits. However, there are some management areas that do not get proper attention as other important issues such as time, quality, and risk management. Moreover, there is a neglected area such as stakeholder management, as shown in Fig. 3 .
Seventy percent of the results showed that there is no specific management methodology to be followed in managing green building projects, and the most used management methodology is Agile due to its ability to control project output and then Waterfall, Prince 2, Critical Path, and PM Book framework as shown in Fig. 4 .
The most commonly used software programs in managing green projects in Egypt are Revit, then Excel, Autodesk Green Builds, Primavera, and finally Microsoft Project and Green Wizard as shown in Fig. 5 .
The responsibility of choosing the methodologies and software programs used in green building projects falls on the project manager, then the green building consultant, and finally the project management office, as shown in Fig. 6 .
The main obstacles that project managers face when managing green buildings in Egypt by the order are as follows and shown in Fig. 7 :
The lack of awareness of contractors.
The absence of government incentives.
The lack of professional expertise.
The lack of recycling companies.
The lack of data on the lifecycle cost of available materials.
The lack of green resources and their data.
The lack of technology required for some credits.
57% of the results showed that there were no discrepancies between the estimated project cost and the final project cost achieved, while the other 43% who admitted that the discrepancy existed, 67% of them classified the discrepancy as minor, and 33% as intermediate, as shown in Fig. 8 .
The project phases in which project managers participate in green building projects. Ref: Researchers
The area of knowledge in which project managers participate in green building projects. Ref: Researchers
Project management methodologies most commonly used in green building projects. Ref: Researchers
The most used software programs in managing green building projects in Egypt. Ref: Researchers
Responsibility for defining project management methodologies and software. Ref: Researchers
The Obstacles that are facing project managers in green building projects in Egypt. Ref: Researchers
Discrepancies between the estimated project cost and final project cost achieved. Ref: Researchers
The reasons behind this discrepancy are the unrealistic estimation, the change in material costs, and those green building requirements that were overlooked in the early design phase.
Seventy-eight percent of the results showed that there are discrepancies between the estimated project duration and the final project duration achieved in green building projects, and these discrepancies are estimated as 50% intermediate and 25% major and 25% minor as shown in Fig. 9 . The reasons for this are that the process is not usually smooth, there are many project stops, the client changed the design, and the estimates are unrealistic.
Discrepancies between the estimated project duration and final project duration achieved. Ref: Researchers
Conclusions
In general, as mentioned in the literature review, there is a lack of project management methods/methodologies that address sustainable construction projects around the world. In addition, it is concluded from the study that there are many defects in the way that green building projects are managed in Egypt, which could be one more obstacle in addition to the set of obstacles extracted from the previous studies, which led to delays in the green building movement. As it is concluded from the questionnaire results, open questions, and the interview with the project managers as follows:
There is no clear methodology governing the green building management process in Egypt. All efforts in that field rely on the vision and experience of the project manager with the assistance of current general management methodologies such as Agile, PM BOOK, and Waterfall. As well as, these methodologies are not used efficiently to overcome the major obstacles and solve the problems that these projects are exposed to in Egypt.
The roles of project managers and green building consultants are unclear. Sometimes the project manager and the green consultant are the same person in charge of the managerial work as well as the technical consultant and certification process, which is a huge task, especially in large-scale projects. In other cases, the project manager is completely isolated from the sustainable management or the green certification process, which also leads to poor project bonding, and does not activate the principles of the integrative process.
Cases in which the project manager and the green building consultant are the same person, showed complete ignorance of some management knowledge areas like stakeholder management and weak risk management. As well as, the concept of a green project manager is missing, the person who has the project management knowledge, including management methodologies, methods, tools, and techniques, and has leadership skills to lead the entire project team and organize all project processes in an integrative manner holistically in the context of sustainability.
Late commissioning of a green consultant in the project or deciding to follow building green principles after the start-up design phase may result in repeat work, increase budget, schedule delays, and failure to obtain green building certification.
Stakeholder and risk management knowledge areas are the most neglected, although studies emphasize the importance of these areas in green building projects’ success.
Recommendations
Green architecture needs to develop more simply applied management methods, methodologies, tools, and techniques in order to overcome some of the obstacles facing green buildings around the world, especially in Egypt, to encourage the sustainability movement.
There should be a distinction between the roles and responsibilities of project managers and green building consultants. The main factor in the success of the project is that everyone knows their role in the project and what their duties are.
The green building consultant is the person who leads the building certification process and must have knowledge of the technical data involved in green building construction, be supportive of the team on technical matters, and coordinate all project disciplines. Meanwhile, the green project manager is the person who deals with the management aspect of the project in the context of sustainability. In addition, he must be familiar with the principles of sustainability and green buildings, the requirements of the rating system, and the process involved in the system of certified green buildings.
The participation of a green project manager in the project from the pre-design stage is mandatory for organizing all project operations, maintaining project sequence, putting the project on track, recording and solving problems, making decisions, and others. Any delay in involving the green project manager or even the green consultant from the pre-design stage of the project affects the success of the project.
It is very important to incorporate green building requirements into the design from a very early stage. This doubles the ease of fulfilling these requirements and increases cost-efficiency in addition to saving time.
Overcoming issues of lack of knowledge of the team, contractors, suppliers, and operators through scheduled training during the project life cycle. This training should be continuous, repetitive, and defined in pre-design in a separate plan developed by the project managers.
Documentation of green building projects is a very important issue, especially for the certification process, so the documentation plan should be defined at the initiation stage and developed throughout the project life cycle.
Stakeholder management is an effective management area that needs to be noticed and given more attention by project managers in the field of green building.
Most of the obstacles that contradict sustainable construction in Egypt could be overcome by project management. The most important obstacles identified in the literature review and ranked by the project manager in the questionnaire are as follows, with some suggestions from the project management point of view:
Lack of awareness of contractors and professional expertise, which could be mitigated in the current projects and future projects by organizing scheduled training that is performed throughout the project life cycle. In addition, recording the lessons learned and sharing them within the organization and outside the organization, if possible, is an active action toward increasing awareness and professionalism in this field.
Through stakeholder management, project managers could participate with the authorized government agencies in the early project discussions to be involved in the project and recognize the benefits that the project will introduce to the surrounding environment and the community, which could lead to an increase in the authorized agency interest and recognition toward sustainable construction and green buildings and could lead to increase government incentives for the project.
National database systems for all available green building materials with lifecycle assessment data, recycling companies, sustainability, responsible manufacturers, and all required green building resources are needed to facilitate the green certification process and overcome the lack of information and verified green resources. The database systems should have frequent updates periodically to include all the new resources and companies.
Project managers could avoid or mitigate the problem of the lack of professionals or technology required for some credits by involving professionals or specialized agencies from abroad in the project, which required efficient human resources management and strong communication plans to acquire and manage the project virtual team effectively.
Finally, research on green building project management should be encouraged, especially at the local level, due to its important role in the success of the project, overcoming the obstacles that may face this type of construction, and the ability to organize the process and coordinate between several of its elements.
Availability of data and materials
All data generated or analyzed during the current study are available from the corresponding author on reasonable request.
Abbreviations
Building Research Establishment’s Environmental Assessment Method
Green Pyramid Rating System
Individual competence baseline
International Organization for Standardization
Leadership in Energy and Environmental Design
Project Management Body of Knowledge
Sustainable development
Systematic literature review
US Green Building Council
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Abdelkhalik, H.F., Azmy, H.H. The role of project management in the success of green building projects: Egypt as a case study. J. Eng. Appl. Sci. 69 , 61 (2022). https://doi.org/10.1186/s44147-022-00112-5
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