Picture this: mountains of soil, a ubiquitous byproduct of construction, piling up across the nation. Traditionally, this “dirt” has been treated as waste, an impediment to the gleaming structures it makes way for. Yet, this oversight belies the staggering costs and impacts of excess soil management—an integral, often overlooked sector within construction that generates billions in annual costs, exerts enormous environmental and health impacts, and grapples with regulatory compliance.
The soil displaced during construction isn’t just dirt; it’s a silent economic and environmental force. In Canada alone, managing excess soil generates billions in costs annually. Diesel dump trucks, central to soil transport, traverse hundreds of millions of kilometres each year, emitting hundreds of thousands of metric tonnes of greenhouse gases (GHGs). The environmental toll isn’t limited to emissions; improper relocation of contaminated soils can devastate groundwater and human health.
Despite these implications, the management of excess soil often receives scant attention. It can account for five percent or more of a construction pro forma, yet it frequently appears as a mere line item in development budgets, overlooked by lenders and insurers. Regulatory compliance has been checkered, with lax conditions tempting unscrupulous actors.
However, the winds of change are sweeping through the sector. Regulatory shifts and technological advancements are driving a long-overdue transformation. In Ontario, for instance, O. Reg 406/19 holds project owners liable for proper soil management, with hefty penalties for non-compliance. This responsibility cannot be shrugged off onto contractors or soil haulers, underscoring the need for vigilant soil management.
“Excess soil management is an area of significant liability that is poorly understood by the financial industry,” notes Krista Chaytor, a partner at WeirFoulds LLP. This sentiment echoes a broader awakening among industry stakeholders, who recognize the financial and sustainability benefits of meticulous soil management.
SoilFLO Inc., an earthworks solutions software provider, exemplifies this transformation. By employing technologies that track soil relocations, the company has facilitated the safe repurposing of soil, turning exhausted quarry pits into public parks and diverting reusable soils from landfills. Proper classification and tracking increase competition among receiving sites, potentially lowering tip fees and reducing GHG emissions. A 2016 study estimated that reducing dump truck travel distances by just 10 percent could cut thousands of tonnes of annual emissions in Ontario alone.
Yet, many financial institutions remain oblivious to these developments, missing opportunities to invest in and foster growth in sustainable soil management. As construction industry journalist, I’ve encountered bewilderment from bank representatives when discussing the relevance of soil management to their business units or ESG aspirations.
Soil management is more than an environmental concern; it’s a business imperative. Does your organization understand the risk exposure from projects that ignore good soil management practices? Have you engaged expert legal counsel to review contracts and liability limitations? Do you review applicants’ earthworks management plans for efficiency and regulatory compliance? Do you appreciate the sustainability benefits of investing in good soil management?
If the answer to any of these questions is “no,” it’s time to rethink your approach. The sleeping giant of soil management is awakening, and now is the time to spark debate and shape the future of the sector. Conversations must commence, not just for the health of the planet, but for the prosperity of the industry and the well-being of the communities it serves. Let’s build a better world, one mountain of soil at a time.