Energy Resources Usage

Energy Usage and Conservation

In response to the SBTi carbon reduction targets, Kedge Construction is promoting energy saving and carbon reduction for its headquarters building and engineering project offices. The specific policies are as follows:

Energy Saving Measures

To enhance energy conservation and carbon reduction benefits while providing superior working environments for colleagues, company headquarters will relocate to the newly completed Minquan Building in June 2025. The facility features rooftop solar power generation equipment with 16.92 kW capacity, while public areas will utilize 100% renewable energy (including green electricity contracts + EACs). Regarding energy management, high-efficiency equipment and energy management system implementation anticipates approximately 50% electricity consumption reduction.

Energy Policy

Energy Management

Updated Third-Party Energy Consumption Analysis

Company headquarters’ 2024 electricity consumption totaled 109,156 kWh, representing a 6.98% reduction compared to 2022. Three-year electricity consumption trends demonstrate consistent decline, indicating successful implementation of company ESG initiatives and General Affairs Department energy conservation and carbon reduction measures. 

Simultaneously, nationwide construction site electricity consumption during 2024 exhibited notable reduction. While certain sites experienced substantial diesel generator fuel consumption increases due to delayed temporary electrical supply during earthwork phases, overall energy intensity decreased 5.62% compared to 2023.

Waste Disposal

During 2024, company headquarters annual per capita water consumption reached 8.69 m³, increasing 35.15% from the previous year, primarily attributed to significant shared public water consumption increases from May through September, assessed as resulting from increased summer air conditioning cooling tower water requirements. For the company’s construction sites, water usage is mainly for employee domestic use (100% sourced from municipal water) and for vehicle washing (using rainwater harvesting or recycled groundwater from wells).

Considering water resource stress within engineering project locations, Water Risk Atlas analysis of local water resource pressure across various construction sites indicates low-to-medium water stress levels, excluding classification as water-stressed regions. There are five pressure levels (Low, Low-Medium, Medium-High, High, Very High) as per the Water Risk Atlas.

Additionally, a query of the Reservoir Catchment Area and Drinking Water Quality and Quantity Protection Area system confirmed that none of the company’s construction sites are located within drinking water quality and quantity protection areas or groundwater control areas.

Waste Management

The table below summarizes the domestic waste, surplus construction earth and rock, and construction waste generated by the company’s headquarters and nationwide construction sites in 2024.

Green Transformation from Demolition to Construction: Implementing Construction Circular Economy Blueprint

Kedge Construction maintains sustainable development as its central focus while actively supporting government circular economy policies and implementing construction industry waste reduction and resource reuse objectives. Within the “Banqiao District Fuzhong Section Urban Renewal Project,” Kedge implemented “cradle to cradle” circular principles, achieving efficient circular reuse of construction surplus resources through comprehensive building demolition, classification, and recycled material manufacturing processes.

Selective Demolition Operations Ensuring Source Classification Quality

Throughout the demolition phase, Kedge Construction initiated meticulous classification of construction surplus materials, particularly conducting on-site preliminary screening and categorization of B5-class earth and stone materials (primarily masonry with supplementary concrete blocks and fine sand). Demolition operations proceeded through three distinct phases:

Recycled Material Processing and Application Creating Closed-Loop Circulation

Post-demolition B5-class earth and stone materials underwent processing by partner Xinglei Resource Recovery through sequential coarse crushing, fine crushing, washing, screening, grinding, and dehydration procedures, manufactured into recycled fine aggregate per CNS 1240 standards, subsequently incorporated into concrete mixtures replacing natural fine aggregate to produce “Recycled Fine Aggregate Concrete.”

This recycled concrete achieved successful application within site engineering including: continuous wall guide trench surfacing, PC layers (precast concrete foundation layers), sedimentation basins, vehicle washing facilities, and additional areas, effectively realizing building material “circular self-utilization” within the site while establishing closed-loop resource circulation systems.

Combined Performance and Environmental Benefits

Experimental validation demonstrates recycled fine aggregate concrete exhibits superior engineering performance:

  • Compressive Strength: 180-day strength achieves 563 kgf/cm² (design strength 350 kgf/cm²), 91-day strength reaches 463 kgf/cm² (design specification 280 kgf/cm²).
  • Durability: Chloride ion penetration below 1,000 coulombs, providing corrosion resistance and extended service life.
  • Structural Stability: Multi-porous characteristics with high water retention capacity effectively minimize drying shrink-age crack development.

Combined Performance and Environmental Benefits

Recycled fine aggregate utilization replaces natural sand and gravel resources, reducing waste volumes while alleviating soil disposal facility pressures and preventing environmental impacts from natural resource extraction including soil erosion, contamination, and ecological degradation.

Based on Ministry of Interior Architecture and Building Research Institute carbon footprint data, each cubic meter of natural sand and gravel generates approximately 1.39 kg CO2e. Utilizing recycled materials from this project reduces approximately 3.92 tons CO2e, demonstrating quantifiable carbon emission reduction achievements.