How X29 can support implementation of the revised PAS 2080:2023

NEC Secondary Option X29 Climate Change is designed to help NEC users in their drive towards achieving net zero greenhouse gas emissions and other related climate change and biodiversity targets. Released in July 2022, the Option is available on all NEC4 main and main subcontract forms.

It enables clients by providing additional terms of contract. These are the Climate Change Requirements which form part of the contract’s Scope; the Climate Change Plan which gives contractors the ability to set out their strategy for achieving the Climate Change Requirements; the Performance Table, which enables clients to set financial incentives to encourage contractors to achieve the stated performance targets; and finally the Climate Change Partners, stakeholders identified within the Climate Change Requirements that the contractor in question is required to collaborate with.

PAS 2080 is a standard for managing carbon in building and infrastructure for anyone involved in the delivery of infrastructure. It looks at the whole supply chain and aims to reduce carbon and cost through intelligent design, construction, and use. The standard was developed by the British Standards Institution (BSI), with sponsorship from the Institution of Civil Engineers (ICE) and Green Construction Board.

Recently revised in 2023, the update to the standard incorporates five key themes:

• An integrated approach to the built environment: widening the scope of PAS 2080 beyond infrastructure to the built environment.
• Systems thinking and net zero: integrating the transition to net zero into the standard and applying systems thinking throughout.
• Taking a whole-life view: addressing the urgent need to retrofit existing stock and balance capital carbon investment with operational and user benefit.
• Nature-based solutions: reflecting their value to both carbon reduction and climate change resilience.
• Collaboration: highlighting the importance of working together across the value chain.

How the PAS 2080 revisions align with X29

The revised Clause 1 of PAS 2080 emphasises the importance of recognising emergent themes and policy changes since its previous version in 2016, particularly focusing on concepts such as net zero, system-level change, integration of carbon implications into climate resilience and prioritising nature-based solutions.

The NEC4 Secondary Option X29 can be used to directly support these revisions by placing climate change and its implications at the heart of projects. It requires parties to identify and assess risks associated with climate change, including considerations of net zero targets and the integration of carbon emission reductions through the Climate Change Requirements into decision-making processes.

Climate Change Requirements can be set by the Client, who may be the Asset Owner and/or the Designer working with them but Option X29 also allows for a Contractor to be involved in the process at the procurement stage. The Climate Change Requirements form part of the Scope and therefore become a contractual obligation. By mandating proactive measures to address climate change impacts, such as developing strategies for adaptation and carbon reduction in the Climate Change Requirements, X29 can reflect the broader objectives outlined in the revised Clause 1 of PAS 2080.

Additionally, by encouraging collaboration among stakeholders to address these challenges collectively at both the procurement and delivery stages, both X29 and the revised Clause 1 of PAS 2080 demonstrate the importance of a systematic approach to carbon management and sustainability throughout a project's lifecycle.

It should be noted that for X29 to encompass the whole lifecycle of a project or Asset, it must be included in all contractual relationships throughout the project or Asset lifecycle including but not limited to professional services, service & maintenance, and decommissioning & disposal.

The revised Clause 4 of PAS 2080 has been substantially rewritten to encompass fundamental concepts such as control and influence, whole-life carbon assessment, and the carbon reduction hierarchy. X29 can be used to encourage the delivery of these targets through the Climate Change Requirements or by providing the Performance Table for achieving targets throughout the project lifecycle.

Specifically, it requires the identification and evaluation of risks associated with achieving the Climate Change Requirements, which can include considerations of whole-life carbon emissions and strategies for carbon reduction. By emphasizing the importance of controlling and influencing carbon emissions for project incentivization in the Performance Table and mandating the Climate Change Requirements within the project Scope, X29 aligns with the objectives of Clause 4 in PAS 2080.

The revised Clause 6 of PAS 2080 has been completely rewritten to incorporate elements from the 2016 version and is structured around whole-life work stages and value chain members. It now addresses carbon considerations throughout decision-making processes and presents requirements that directly guide specific work stage activities.

X29 and the wider clauses within the NEC can align with these changes by enabling the Client and supply chain to identify and assess risks associated with climate change across all stages of the project lifecycle and provide suggestions for change to the Climate Change Requirements. For Clients working with suppliers to develop strategies for carbon reduction and adaptation through the Climate Change Plan, X29 ensures that carbon considerations are integrated into decision-making processes throughout the lifecycle of a project.

This encourages collaboration among stakeholders, including asset owners, designers, constructors, and other suppliers, to develop and implement effective strategies for carbon management. This aligns with the objectives of revised Clause 6 in PAS 2080, which emphasises addressing carbon implications at various work stages.

The revised Clause 7 of PAS 2080 has undergone changes to ensure consistency in the assessment process, with reference to relevant quantification standards such as EN 15804 (Environmental Product Declaration), EN 17472 (Sustainability assessment of civil engineering works) and EN 15978 (Methodology for the assessment of performance of buildings). It aims to resolve underlying differences and conflicts between quantification standards and outlines principles for a consistent approach to quantification.

Option X29 demonstrates alignment with these changes through its requirement that the Client provide a statement of the methods and rules used to compile the performance metrics in Performance Table and make clear the coverage and method of measuring the performance targets. Through this requirement, X29 ensures consistency in assessing performance targets and their implications throughout the project lifecycle. The collaboration fostered between stakeholders within X29 facilitates a systematic approach to addressing carbon implications and quantification standards.

Clause 11 of PAS emphasizes collaborative behaviours and links back to requirements outlined in other clauses, particularly clause 6. It aims to foster cooperation among stakeholders throughout the project lifecycle.

In alignment with this, the whole ethos of NEC Contracts is built on enabling collaboration in accordance with core clause 10.2 of the NEC. X29 is no different, it encourages collaboration among parties by including the requirement for the identification of Climate Change Partners, stakeholders to be involved in the project at all stages of the project lifecycle, encouraging collective efforts to address climate change risks and manage carbon emissions effectively. By requiring stakeholders to work together to develop strategies for carbon reduction and X29 mirrors the collaborative ethos advocated in Clause 11 of PAS 2080.

Conclusion

In the context of a contractor or constructor involved in a construction project, implementing the clauses of PAS 2080, aligned across the project’s supply chain through the NEC4 secondary Option X29 is significant for several reasons:

1. Legal Compliance: Adhering to PAS 2080 through relevant contract clauses, such as X29, ensures that contractors or constructors comply with industry standards and legal requirements regarding carbon management and climate change mitigation. This compliance reduces the risk of legal disputes and potential liabilities associated with failing to meet regulatory obligations.
2. Risks Management: Incorporating carbon management practices and climate change adaptation strategies outlined in PAS 2080 into X29 allows contractors and constructors to effectively identify, assess, and mitigate risks associated with climate change impacts. This proactive approach to risk management can help prevent project delays, cost overruns, and reputational damage resulting from unforeseen climate related events.
3. Competitive Advantage: Demonstrating commitment and expertise in sustainability and carbon management can enhance the reputation and give contractors and constructors a competitive advantage. Asset owners, investors, and other stakeholders increasingly prioritise environmentally responsible practices and compliance with PAS 2080. For example, PAS 2080 is a key reference document in the UK government’s Construction Playbook.
4. Operational Efficiency: Integrating carbon management considerations into project planning, design, and execution processes improves operational efficiency and resource utilization. Contractors and constructors can optimize construction methods, materials selection, and resource use to minimize carbon emissions and reduce environmental impact, leading to cost savings and improved project performance.
5. Stakeholder Engagement: Collaboration and communication among stakeholders, as emphasized in PAS 2080 and X29, are essential for successful project delivery. Contractors or constructors or any Climate Change Partners play a crucial role in facilitating stakeholder engagement, coordination efforts among project participants, and fostering a culture of collaboration to achieve common sustainability goals.

Overall, compliance with PAS 2080 implemented through contract clauses such as X29 makes a powerful combination that enables and amplifies the supply chain’s ability to effectively manage carbon emissions and, in the process, mitigate climate change risks, enhance competitiveness, and deliver sustainable projects. By integrating carbon management practices into their operations and projects, stakeholders across the supply chain can contribute to a more resilient and sustainable built environment.