Why the smartest builders are getting greener
The future of construction lies in building smarter, cleaner, and more ethically. The construction industry is entering a new era, one defined not only by its projects, but by its principles. For decades, the sector has operated on a model that prioritized speed, schedule, and cost efficiency. But with mounting pressure from climate change, shifting client expectations from higher costs and greater uncertainty around demand, and ever-changing environmental regulations, that model is quickly becoming obsolete. Today, sustainability is not aspirational or optional; it’s a defining characteristic of leadership and longevity in the building world. However, adopting sustainable practices only gets us to neutral, and serves as a step to the more critical goal of becoming more regenerative in our approach and solutions.
Few industries impact the environment as much as construction. Globally, the built environment uses over 40 percent of the world’s energy, 30 percent of raw materials and 12 percent of water usage. It also accounts for over 38 percent of CO₂ emissions and generates 35 percent of waste. In New York City, buildings are responsible for nearly 70 percent of emissions, making the built environment a target in the push toward decarbonization.
These metrics are not sustainable, and change is needed. Another impetus for change is that in the next 20 years, $56 trillion of wealth will be transferred to the next generation, and this younger voice is demanding change, whether through finance and investment or regulatory means. For forward-thinking construction firms, this is a call to action.
CNY Group, a New York–based construction management firm, answered that call early. In 2024, CNY achieved B Corp certification, one of the few construction firms to achieve this status after embedding sustainability into the core of its operations. From low-carbon concrete to electrified equipment and a 92 percent waste recycling rate, the firm offers a glimpse into reimagining how buildings go up and setting a precedent for how industry must evolve.
The regulatory tipping point
While some possess a vision rooted in long-term outcomes, the built environment must change now, and the industry is being pushed by increasing mandates.
In New York City, Local Law 97 (LL97) has become a watershed moment. Enacted as part of the city’s Climate Mobilization Act, LL97 compels buildings over 25,000 square feet to drastically reduce carbon emissions, with penalties for noncompliance starting in 2024, and stricter targets by 2030. For many building owners, this has triggered a scramble to assess, retrofit, and prepare.
But New York is not alone with these new regulations. At the federal level, two significant measures underscore the national shift toward sustainable construction.
The federal government currently owns over 360 million square feet of space in the US. The DOE Final Rule on Federal Buildings, announced in 2024, mandates fuel usage in new federal construction and major renovations by 2030. Meanwhile, the DOE’s Blueprint for Building Decarbonization outlines a path toward zero-carbon buildings, advocating for energy-efficient design, electrification, and emissions benchmarking across public and private sectors. These federal measures are poised to play a defining role in setting new expectations for sustainability and the regenerative process, influencing how materials are sourced, projects are planned, and buildings are delivered across the industry.
These aren’t fringe ideas. They are increasingly the framework by which buildings will be evaluated, permitted, and financed. Current political policies may temporarily deter certain programs, but the need and demand are real and will overcome special interests.
At CNY, where our purpose centers around how business can be a force for good, our strategy is about more than reacting to policy. Sustainability and regenerative practices are embedded in our business because it’s right for all stakeholders, and it positions us to enhance our clients’ success.
What this means for builders
This regulatory evolution and impact on investment strategies and financing signals a deeper industry transformation. Sustainability is no longer the sole domain of architects or owners; it’s now a planning mandate. Builders, developers, and manufacturers are being asked to deliver projects that meet environmental standards and performance metrics, incorporate sustainable materials, and operate within decarbonization timelines.
We need to consider regenerative processes and design that take into account carbon reduction, compliance management, and innovation. Builders that can integrate emissions modeling, optimize energy performance and conservation measures, and deliver resilient buildings will find themselves at a competitive advantage not only with regulators, but with owners, investors, and all stakeholders. Sustainability is not a constraint, but a strategy to build smarter and more responsibly.
A new model for construction firms
CNY is demonstrating what that approach can look like in practice. Complex urban developments and adaptive reuse projects, particularly in densely populated Manhattan, bring a confluence of environmental and logistical challenges.
Recognizing the need for deeper accountability, CNY pursued B Corp certification, a rigorous designation awarded to for-profit companies that meet high standards of verified social and environmental performance, legal commitment, and transparency of business practices. To achieve and maintain this status, an in-house sustainability team is tasked with standardizing regenerative practices across projects and continuously refining sustainability and ESG commitments.
CNY approaches regulations like LL97 as opportunities to improve how we build rather than checklists. Through internal standards, coordination, and a focus on long-term impact to all stakeholders, the firm is working to integrate environmental considerations more consistently across project phases, contributing practical solutions that aim to support both client objectives and broader industry progress that include the local communities and society.
The path forward
Looking ahead, climate policy is an opportunity to define a higher standard of building with integrity and intelligence. Achieving a low-carbon future will require high accountability among project teams, and measurable results.
For every construction leader facing the crossroads between business as usual and bold reinvention, the message is clear: how you build matters. And the smartest builders are already getting greener. We are all in this together!
Ken Colao
Ken Colao is the Founder and CEO of CNY Group, a B Corp-certified construction management firm based in New York City. He was named EY (Ernst & Young) Entrepreneur of The Year® for New York Region, in 2017 for Real Estate, Construction and Hospitality and currently serves as the Vice Chairman of the Board of Directors at New Jersey Institute of Technology. With over four decades of experience leading complex urban developments, Ken is a recognized advocate for sustainable building practices. He was named one of Crain’s New York’s Notable Leaders in Sustainability for 2024 and served as Champion of YPO’s Construction Industry Network Global Sustainability Impact Awards in 2024 and 2025 and championed its first Digital Roundtable event on ESG as an Emerging Influence – a topic Ken is passionate about.