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Top 8 compliance challenges for 2025: Are you ready?

Blogs 5 dec 2024

The construction industry is experiencing a transformative shift. Evolving regulations and cutting-edge technologies are redefining standards, with a growing emphasis on sustainability. These changes are affecting how buildings are designed, constructed, and managed. Compliance is no longer optional, but a necessity for meeting legal obligations, gaining competitive advantages, and unlocking financial benefits.  

With new frameworks and sustainability standards set for 2025, staying informed is critical. Read on for a breakdown of the top compliance challenges facing the construction sector next year and how you can stay ahead.  

1. The Expanding Scope of ISO 19650 

ISO standards continue to adapt to ensure organizations are prioritizing quality data. Two key updates—ISO 19650 and the anticipated revision of ISO 9001:2015—promise to redefine best practices for construction and quality management in 2025. 

ISO 19650, the gold standard for Building Information Modeling (BIM), emphasizes structured information management across project lifecycles. Compliance offers significant benefits: 

  • Standardized frameworks for recording and organizing project data. 
  • Improved accuracy in design and construction workflows. 
  • Aligning project outcomes with environmental goals. 

Additionally, the December 2025 revision of ISO 9001:2015 will address emerging priorities such as sustainability and digitalization. This update acts as a pathway to addressing modern challenges, while maintaining the continuity and reliability that ISO 9001 is known for.  

To prepare: 

  • Invest in ISO-aligned digital solutions for compliance and process improvement. 
  • Conduct internal audits to identify gaps in quality and sustainability efforts. 
  • Engage industry experts to proactively implement updated frameworks. 

2. Complying with the EU Energy Performance of Buildings Directive (EPBD) 

The revised Energy Performance of Buildings Directive (EPBD) aims to decarbonize the EU’s building stock by 2050, with key milestones set for 2025. The regulations focus on improving energy efficiency in existing buildings and ensuring new buildings meet sustainability requirements.  

Compliance measures include:  

  • Minimum energy performance standards: Stricter energy thresholds for non-residential buildings, prompting renovation of low-performing structures.  
  • Solar-readiness: New buildings must accommodate solar energy installations. 
  • Enhanced Energy Performance Certificates (EPCs): More detailed and up-to-date reporting on energy use and efficiency.  

These regulations require firms to track embodied carbon in materials and focus on their long-term environmental impact, ensuring compliance with the updated energy performance criteria.  

3. New Sustainability Standards with BREEAM Version 7 

BREEAM V7, launched in late 2024, was not a minor update but a comprehensive overhaul to building performance standards. The new framework aligns with net zero targets and global benchmarks from a project’s start to finish.  

Notable changes include:  

  • Operational Energy Performance: Stricter benchmarks for Energy Use Intensity (EUI) and Carbon Intensity mean design teams must accurately model energy usage and occupancy patterns to achieve credits.  
  • Flexible Demand Side Response: Credits incentivize integrating systems that adjust energy consumption based on renewable energy availability.  
  • Life Cycle Assessment (LCA): Extended credits for embodied carbon reduction across the entire building lifecycle.  
  • Ecology and Biodiversity: Criteria aligned with Biodiversity Net Gain requirements, encouraging development teams to prioritize ecological improvements.  

In 2025 the BREEAM Refurbishment, Fit-Out, and In-Use schemes are due to be updated. For a smoother process, start planning early and integrate compliance as early as the concept design phase.  

4. Understanding the CSRD 

As of this year, the Corporate Sustainability Reporting Directive (CSRD) requires approximately 50,000 companies to report on their environmental, social, and governance (ESG) impacts – a significant increase from previous years. To comply, businesses must disclose detailed data on carbon emissions, pollution, and resource use, all in support of the EU’s climate neutrality goal for 2050.  

For more details, see our blog post: What businesses need to know about the EU’s CSRD. 

5. Preparing for the Construction Products Regulation (CPR)  

The 2025 update to the Construction Products Regulation (CPR) will introduce stricter standards for environmental sustainability and product traceability. Manufacturers, including those outside the EU exporting to the market, must adhere to these changes: 

  • Provide detailed data on embodied carbon, energy use, and recyclability.  
  • Create digital product passports detailing product lifecycles and sustainability metrics.  
  • Design products for reuse, recycling, and deconstruction.  
  • Assume responsibility for product disposal at end-of-life. 

Preparing for these changes now will put you ahead of businesses who are slower to adopt circular economy principles.  

6. Bridging Global and Regional Standards 

Frameworks like LEED and BREEAM Version 7 are now key indicators of a building’s environmental performance and with the release of LEED v5 in early 2025, the bar will be raised even higher. This new rating system will focus on three areas: decarbonization, quality of life, and ecological conservation.  

For example:  

  • Decarbonization: Reductions in embodied carbon, operational emissions, and transportation impacts.  
  • Quality of life: Enhanced credits for health, well-being, and resilience.  
  • Ecological conservation: New strategies to restore ecosystems and prevent environmental degradation.  

To stay ahead, you will need to adopt both global and reginal certifications for seamless project execution.  

7. Integrating IoT and Digital Twin Technologies 

A recent study by McKinsey & Company reveals that digital solutions enhance compliance and unlock operational efficiencies and cost savings. By 2025, these tools will be essential for real-time tracking of energy use, safety, and material performance. The rise of Internet of Things (IoT) devices is changing the way we approach compliance. Digital solutions like material passports and digital twin technology help firms manage sustainability goals by documenting the environmental impact and reuse potential of materials throughout their lifestyle. 

8. Aligning with the EU Green Deal 

In the upcoming year, construction businesses must take concrete steps to align with the EU Green Deal. Material reuse is central to the set of policies laid out, emphasizing material reuse, carbon tracking, and renewable energy integration. Construction businesses must reduce reliance on virgin resources, accurately report embodied carbon, and design buildings to meet more stringent energy efficiency requirements.  

Turning Compliance into Opportunity 

2025’s compliance challenges can seem overwhelming, but they present positive opportunities for forward-thinking forms to lead through innovation. Here’s what we recommend as best practices:  

  • Prioritize sustainability: Design for deconstruction and using eco-friendly materials. 
  • Leverage advanced technologies: Use IoT and digital twins to enhance efficiency and meet regulations.  
  • Align with global standards: If you have not already, now’s the time to start preparing for ISO, LEED, and BREEAM certifications.  

Future-Proof Your Business with Madaster 

Madaster offers a one-stop solution for compliance. By partnering with us, we provide clients with the necessary information to obtain global and regional certifications, while driving sustainability goals.  

Discover how Madaster’s solutions can help your business lead the way into 2025.  

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