Modular technology uses techniques that reduce and ultimately eliminate the impact of a new building on the environment and human health. Its fundamental principles are based on: Reusable Materials, Siting and Structure Design Efficiency, Energy, Water and Materials Efficiency, Indoor Environmental Quality Enhancement, Operations and Maintenance Optimization, Waste and Toxics Reduction.

But the main features that make modular technology eco-friendly are its reusable and recyclable properties of materials. For example, the energy required to recycle steel shipping containers is 5 per cent that of the energy used to melt it. Thus, repurposing them is much more energy efficient. This also translates into less damage to the environment as the same materials are being reused for construction and waste disposal is taken care of.

Green construction further reduces its impact on the environment by saving on energy, reducing fresh water use, using less toxic materials, creating less pollution and incorporating energy-saving designs. Since these buildings are prefabricated and built to factory specifications, a lot of trial and error in the process is eliminated, resulting in less repair and reconstruction and thus, saving on construction time, man power and wasted materials. They also nearly eliminate the use of trees to build a home.