Granite Construction Transforms Its Sustainability Efforts Into A Competitive Advantage.
By Therese Dunphy
attract and retain top talent.
In coordination with its most recent sustainability report, Watsonville, Calif.-based Granite Construction has refreshed its sustainability strategic plan with an enhanced focus on providing value to stakeholders and distinguishing the company from competitors.
“We have three overall objective areas in terms of dependable governance, social responsibility, and environmental stewardship,” explained Raven Adams, sustainability director. “It’s all supporting our efforts to create enduring value. I’m really proud of the team’s collaborative effort in developing this new strategy, and I’m excited to get it out into the world.”
While some operators may view sustainability as a cost center, Granite sees it differently. “The whole thrust of our sustainability strategy is to leverage sustainability as a competitive advantage and to create value for all our stakeholders,” Adams said, noting that value applies not only to investors, but also to employees, communities, and customers.
Sustainability and Employees
“I think of sustainability as a powerful tool to help attract and retain top talent,” Adams explained, “and get them engaged in our mission of sustainability and, through that, help people be more productive and help the company be more profitable.”
Sustainability helps people see how their work contributes to a greater purpose, highlighting how it makes the world a better place, she said. This leads to employees who are more excited and engaged in their work.
As a company, sustainability can create multiple economic benefits. While minimizing the cost of employee turnover, it also increases efficiency in work practices. Whether reducing energy, fuel, or water consumption, efficient use of resources helps lower costs.
During 2024, the company invested $28 million in energy efficiency projects throughout its materials facilities.
Sustainability and the Community
From both a corporate perspective and through its regional business units, Granite gives back to the communities in which it operates. Last year, it formalized a policy to give each salaried employee two days off a year to volunteer to causes of personal significance.
Some of those programs included building a school walking track, raising money for the Ukiah Boys & Girls Club through a long-running chili cook-off, and teaming up with the Northern Nevada Children’s Cancer Foundation for an annual Dozers & Dirt event which has helped to raise $400,000 for local children battling cancer.
“It’s been uplifting to see people come together for these causes that matter to them,” Adams said.
Sustainability and Customers
“In terms of growing our market share, we see an important role here for sustainability to serve as a differentiator to help us win work,” Adams said, noting that many of Granite’s clients have their own sustainability goals. She is embedded in some of the company’s construction project teams, helping to manage sustainability on those projects.
“One of the areas of greatest opportunity we’ve been focusing on for our clients is collaborative forms of procurement, such as construction manager/general contractor or ‘CMGC,’” explained Adams. “The idea is to get involved much earlier in the process so that our expertise is able to be part of the constructability of the entire project. We’ve developed a real expertise in those sorts of methods, and it gives us a lot of windows to identify solutions that drive better sustainability outcomes.”
Adams said that she can get involved in projects even before the 30% design mark. “Your ability to make changes decreases over time, and your cost to make changes increases over time,” she added. “When we’re involved early, before design is complete, we can give input that impacts sustainability outcomes.”
For example, the team was able to optimize site grading on one project and reduce total excavation by more than 30,000 cu. yd. and eliminated the loading, hauling and processing of waste surplus material by using it for fill on an adjacent site.
Recognition for its Efforts
Granite’s commitment to sustainability is making its mark. This year, for the third year in a row, it was recognized as one of Newsweek’s Most Responsible Companies. The award recognizes publicly held companies based on environmental, social, and corporate governance concerns.
“We’re very proud of that recognition,” Adams said. “I think it is a testament to our commitment to doing the right thing for our people, our communities, and the planet.”
Therese Dunphy has covered the aggregates industry for nearly 30 years, while also serving multiple roles as a public official. As the owner of Stone Age Communications, she provides communications consulting services to help aggregate producers build stronger relationships within the communities they serve. She can be reached at [email protected].