Decision making for sustainable development

Abstract

This thesis’ aim is to investigate Norwegian construction firms’ processes and frameworks for sustainable development, and how this may affect their eco-efficiency. Our analysis’ overall purpose is to answer the following research question: “How is Norwegian construction firms’ decision making for sustainable development, and how does this affect the eco-efficiency of the industry?” To answer our research question, data has been retrieved through by using several methods. First, we conducted a cross sectional case study. The qualitative data has been collected through in-depth interviews with 8 different respondents with different positions, representing 8 different firms in the Norwegian construction sector. Second, we analysed the firms’ financial performance and their environmental data by using the firms’ annual- and sustainable reports, in order to retrieve quantitative data in form of net sales and CO2 emissions. Our analysis shows both similarities and differences in decision making for sustainable development in the construction sector. First contingency factors such as the firm’s size, owners and employees all influence the environmental strategy and focus of the organization. Motivation for sustainable measurement, reporting and development are emphasised as a result from stakeholder pressure, oncoming legislations, financial gains, and the desire to guide the industry towards a more sustainable future. However, based on our findings, we argue that today’s environmental measurement and reporting is inconsistent and of low quality. Analysing the Norwegian construction firms’ annual- and environmental reports depicts the vast differences in environmental data measured and reported. Moreover, our calculation of the eco-efficiency performances illustrates the dissimilarities regarding measurement and reporting of environmental data in the Norwegian construction industry. We urge the legislator to impose stricter regulations for measurement and reporting of sustainable data, facilitating for the resources available for the organizations, in order to help the industry to direct its efforts towards sustainable development.