Innovation

Pepper Construction’s innovation lies in embedding sustainability and environmental responsibility directly into the building process rather than treating it as an afterthought. Through its High-Performance Department, the company actively implements low-carbon materials, energy-efficient design, and renewable energy solutions to align with SDG 13: Climate Action, along with SDGs 11 and 12: Sustainable Cities and Communities and Responsible Consumption and Production. One of its most impactful strategies is the reuse of existing structures to reduce embodied carbon emissions—a major contributor to climate change in the construction industry.

“With LEED version 5, we’re going to see a big focus on embodied carbon, which means encouraging reusing buildings rather than demolishing and constructing new ones,” said Natalia, a project manager at Pepper. “Buildings and construction contribute about 40% of global emissions, so there’s a huge opportunity to shift away from demolishing structures and instead renovate, reuse, and preserve materials. Steel and concrete are two of the biggest sources of embodied carbon, so keeping them in place instead of rebuilding is a major win for sustainability.”

A recent example of this approach is Pepper’s Cincinnati office, where the company repurposed an old historic building. Instead of demolishing the structure and rebuilding it to modern standards, the team retrofitted the space, upgrading electrical systems, mechanical components, and insulation, while maintaining the original concrete and steel framework. This strategy significantly reduced waste, material costs, and carbon emissions compared to new construction.

Pepper prioritizing access to daylight for all workers: "One thing that we’re really happy about is that everyone who’s been working in the open office is happy. They all have access to a window now" -Natalia Alvarez, Project Manager.

Inspiration

The inspiration behind Pepper Construction’s innovation of creating sustainable, high quality construction projects is to create an impact in the community. Not only do they focus on the local community, but the construction workers as well. Natalia, the project manager mentioned, “One thing that Pepper is also looking at is finding ways to improve the air quality at job sites.” Pepper focuses on the health of their employees because the construction workers are the ones who are putting in the hard work of making these sustainable structures. Looking into how these buildings are being built and the emissions that are being released will not only benefit the construction workers and the area in which they are being built, but the Earth’s atmosphere as well.  

Pepper Construction is also inspired by the focus on innovation and always trying to find cutting edge construction techniques and technology. They are starting to track numbers for their ESG report and Natalia says, “things like how much waster we’re recycling, how much energy we save with our buildings, or how much waste we throw out from our offices or from our job sites.” This is something that they are still working on, but they are hoping to find more reliable ways to get data from their construction sites and see how they are impacting the community. Everything that Pepper Construction is developing and will continue to develop is inspired by the goal of creating a positive impact in their community and we hope that other companies start to incorporate sustainable practices as well.  

Overall impact

Pepper Construction’s focus on sustainability has had a significant impact on its business, society, and the environment. In regards to their business impact, Pepper's creation of the High-Performance Department helped integrate sustainability into daily operations, making the company more competitive in securing solar and energy-efficient projects. The project manager, Natalia, mentioned, “The High-Performance Department came to existence because there were a group of employees... who wanted to focus on sustainability,” showing how employee-driven innovation led to tangible business benefits. By incorporating solar analysis into all project bids, Pepper secured numerous solar jobs, strengthening its position in the green construction market. Societally, Pepper has worked to improve the work environment for field workers by fostering stronger connections between office and job site employees. The company has also focused on reducing construction-related disruptions in local communities, especially in hospitals and schools. As Natalia said, “We’re looking at ways to improve air quality at job sites… because construction work impacts our neighbours.” This reflects their commitment to being responsible neighbours and ensuring worker well-being. Lastly, Pepper works towards having a sustainable future in construction, through a good environmental impact. For example, Pepper’s Drawdown Project helped them adopt low-global-warming refrigerants and expand solar energy use. They were ahead of the AIM Act in addressing refrigerant issues, as the project manager shared, “We were talking about it long before the AIM Act,” which phased out harmful refrigerants. This proactive approach to climate action led to more sustainable mechanical systems and increased adoption of solar energy across projects. 

Business benefit

Pepper Construction’s focus on climate action provides significant business benefits, including cost savings for clients through energy-efficient solutions like solar installations and rainwater retention. By integrating sustainable practices into all projects—not just those pursuing LEED certification—the company enhances its reputation as an industry leader, attracting eco-conscious clients and partners. Proactively adopting green building strategies also helps ensure regulatory compliance, reducing risks and costly retrofits. Additionally, prioritizing indoor air quality, low-VOC materials, and responsible waste management creates healthier environments for workers and occupants, aligning with the company’s mission to improve quality of life. The innovation also benefits Pepper Construction by enhancing employee well-being, strengthening client relationships, and opening new market opportunities through their sustainability-focused approach. By redesigning workspaces, such as their Cincinnati office, to provide universal access to windows and natural light, Pepper has improved employee satisfaction and productivity. Natalia noted, “Everyone who’s been working in the open office is happy. They all have access to a window now,” highlighting how simple design changes that prioritize well-being can make a significant difference. This focus on creating healthier environments has contributed to higher employee morale and retention, as workers feel valued and cared for. By continuously learning and implementing new sustainability strategies, Pepper Construction fosters long-term business growth and innovation while contributing to a more sustainable environment. 

Social and environmental benefit

Pepper Construction’s innovative sustainability practices provide both social and environmental benefits, particularly through their focus on improving air quality, reducing emissions, and fostering industry-wide education. One major social impact is their commitment to improving conditions for job site workers, ensuring that sustainability efforts extend beyond just buildings. To bridge the gap between office and field workers, Pepper hosts “Lunch and Learn” sessions, where experts educate employees on sustainability, solar energy, and environmentally friendly materials. This initiative ensures that workers understand the importance of low-emission materials, air quality improvements, and energy-efficient practices, empowering them to take an active role in sustainability on job sites. By implementing cleaner materials, low-emission equipment, and waste reduction strategies, Pepper is creating safer and healthier job sites, reducing exposure to harmful pollutants and improving overall working conditions.

Beyond its impact on workers, this innovation also reduces the environmental footprint of construction sites. Traditionally, discussions about carbon emissions in buildings focus on how a structure operates once it’s completed, but Pepper is expanding that perspective to also include emissions from the construction process itself. Their approach considers how building materials, transportation, and site operations contribute to pollution, leading them to adopt more sustainable practices, such as reducing waste, improving insulation, and using renewable energy solutions. This effort is particularly visible in hospital and school projects, where Pepper works to minimize disruptions, noise, and emissions, ensuring that these sensitive environments remain clean and safe for occupants and surrounding communities.

Pepper also plays a leadership role in the construction industry, influencing other companies and professionals through education, collaboration, and industry events. Through conferences like the Chicago Build Expo, they share insights on high-performance construction, sustainability strategies, and innovative materials, helping spread best practices across the Midwest and beyond. By fostering knowledge-sharing and industry-wide adoption of sustainable methods, Pepper is not only improving their own environmental impact but also paving the way for a greener future in construction.

Interview

Natalia Alvarez, Project Manager