Industrialised construction for climate, communities and competitiveness

The construction sector accounts for 34% of global CO₂ emissions, yet remains fragmented and inefficient. Diana Carolina Flores de Casal, Chief Sustainability Officer at Grupo Avintia explains how industrialised construction can change this, combining automation, vertical integration and sustainable design. The results are lower emissions, waste and costs, faster delivery and scalable solutions that benefit residents, communities, governments, industry and the planet.

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The construction sector is one of the largest contributors to global greenhouse gas emissions, accounting for approximately 34% of global CO₂ output. It is also characterised by inefficiencies, fragmented supply chains and significant exposure to both regulatory and climate-related risks.

In this context, the 'industrialisation of construction' emerges as a powerful solution to address environmental imperatives while enhancing productivity, resilience and competitiveness. By applying manufacturing-style methods - automation, vertical integration, standardised processes and digitisation across the construction value chain - the sector can move away from fragmented, slow and resource-intensive practices towards a more efficient model with a substantially reduced environmental footprint. The shift reduces waste of materials, resources, time and labour, while also cutting emissions through optimised water use and energy-efficient production.

Ávita System - Grupo Avintia's industrialised construction ecosystem consisting of a group of three integrated factories - demonstrates the potential of industrialisation to generate measurable business, climate and social benefits.

The construction business opportunity

Our experience at Grupo Avintia's experience shows how industrialised construction can transform the sector by combining efficiency, diversification and resilience.

1. Efficiency and cost savings
   Our journey began with Ávida Factory, where we produce self-supporting concrete panels with the capacity to build up to 2,000 homes annually. The precision and efficiency of this automated process have allowed us to cut construction waste by up to 60%, reduced build times by 30% and lowered lifecycle emissions by over 40% compared to traditional methods. For developers and residents alike, this translates into cost savings and faster project delivery.
2. Revenue diversification
   Having established this strong foundation, we then expanded into specialised factories that broaden our product portfolio and revenue base. With Avimetal Factory, we industrialise the production of balconies and terraces; with Avindow Factory, we manufacture windows directly integrated into our concrete panels. These can be used for various buildings projects - including social housing, for-sale units and senior living facilities - and have thereby significantly reduced reliance on a single market segment, enhanced resilience and opened new revenue streams.
3. Resilience to climate and regulatory risks
   As climate regulations tighten, companies that fail to adapt will face rising compliance costs. Industrialised construction integrates sustainability from the outset through energy and water efficient production systems and by designing with the local climate and environment in mind. These features ensure high performance under leading international sustainability certifications such as BREEAM, the Building Research Establishment Environmental Assessment Method. In turn, this strengthens asset value and investor confidence over the long term.

Shared value for people, planet and business

The climate impact of industrialised construction is both significant, measurable and shared across people, planet and business:

• For residents and investors - homes built for energy efficiency
  Ávita buildings cut energy demand for indoor comfort by 40.1%, reduce final energy consumption (lighting, electricity, gas) by 49.1% and generate 32.2% annual savings per building. This delivers tangible savings for residents through lower utility bills, while developers and investors benefit from more competitive, high-performing assets.
• For communities - construction that saves water
  With efficient construction systems that reduce water use by 20.1%, local communities gain greater resilience against water stress and preserve resources.
• For society and government - construction that cuts emissions
  Material efficiency, shorter timelines and reduced transportation needs reducing lifecycle CO₂ emissions by over 40% compared to traditional methods. This not only helps government and society meet urgent climate targets, but also protects climate companies from rising carbon compliance costs.
• For industry and the planet - construction that reduces waste
  Factory precision cuts construction waste by up to 60%, diverting substantial volumes from landfills. This protects the environment, while simultaneously lowering disposal costs and boosting efficiency for construction firms.

The role of policy in driving industrialised construction

While private sector innovation is vital, large-scale industrialisation requires supportive public frameworks. Three policy areas are critical:

1. Regulatory clarity: Modernising technical building codes to reflect new practices, streamlining approval processes so that innovative systems can be implemented more efficiently and ensuring that emerging technologies are formally recognised. Together, these measures create an enabling environment that accelerates the adoption and consolidation of the model across the sector.
2. Incentives: Establishing clear mechanisms to reward sustainable practices in construction can help drive broader industry transformation.
3. Green financing and public investment: Preferential loans, subsidies or climate bonds can mobilise capital, while public housing and infrastructure projects can serve as benchmarks and catalysts for industrialised construction.

Without these enabling conditions, even proven innovations risk stagnation.

The paradigm shift that cities and the planet needs

Industrialised construction represents more than a new way of building - it's an opportunity for a paradigm shift in how we design and build our cities. By combining efficiency, sustainability and resilience, it addresses some of the most urgent global challenges of our time: climate change, housing shortages and resource constraints.

Our Ávita case demonstrates that this model is not only viable, but also practical, scalable and adaptable to diverse contexts. For business and industry, it proves that sustainability and profitability are not mutually exclusive, but rather mutually reinforcing. For policymakers, it shows how regulation and finance can amplify private sector innovation.

Transforming the construction sector is both urgent and possible. Industrialisation offers a path not only to reduce emissions and costs, but also to create more liveable, equitable and climate-resilient cities.

2025 is a critical year for the Paris Agreement. Ten years on, we need to rethink how we frame the challenge. And seeing challenges differently is what business and we are all about.

ICC is committed to securing what businesses need at the upcoming climate negotiations, COP30, in Belém, Brazil. Learn more about our Opportunity of a Lifetime climate campaign and how to get involved.

*Disclaimer: The content of this article may not reflect the official views of the International Chamber of Commerce. The opinions expressed are solely those of the authors and other contributors.