Human impact on the environment is as old as mankind. Already in ancient time man can influence the environment in which it was located. Our built environment shapes our society, affecting our living, working, entertainment and movement forms. Construction industry is one of the national economic sectors with which help man tries to adapt the environment to his understanding of a high quality, comfortable and safe living environment, creating better living and working conditions. This means that construction industry adds value to the environment and to individual which is located in the environment. Thus the construction industry reflects the society and the period when it was created. That is why construction industry creates and important part of our cultural heritage, our history and our identity. Consequently, now it is looking more and more for the solutions and techniques how to reduce the negative impact of the construction process on human health and the environment throughout the construction product life cycle. Such action must be orient to creation of high-quality, environmentally friendly and healthy living space. It will facilitate the implementation of such construction industry development that will be consistent with the ecological, economic and social sustainability guidelines. For achievement of the goals of sustainable development it would be vitally important to use the advantages of the environmentally friendly construction. To the definition of environmentally friendly construction different terms are used in the world and in Latvia as well – sustainable construction, green construction, ecological construction, eco-friendly construction. Despite the nuanced differences of names and definitions, the central and unifying theme is the need for sustainable development. Environmentally friendly construction is the approach to the design, construction, operation and maintenance of buildings, which aims to reduce the pressure of building as a residential unit on the environment and natural resources. Environmentally friendly construction aims at the creation and responsible maintenance of a healthy artificial habitat, based on the efficient use of natural resources and environmental principles. Environmental certification of industrial products and implementation of environmentally friendly construction projects have a great importance in the development of environmentally friendly construction. Environmentally friendly construction is not just an idea, or trend, but proceeds from each of the factors associated with it. Such factors as the increase in prices of resources, climate change, establishing the law, the requirements for social responsibility, are forced to think about the consequences that may affect the environment and human health. Thus essentially important is with the help of the analysis and management of the construction industry to find solutions how to live more environmentally friendly and healthy, without sacrificing modern conveniences and traditional quality standards and also thinking about the right of future generations to live in a clean and not destructed environment. The paper presents an analysis of the possibilities of the minimization of the negative impact of construction industry on the environment, as well as the aspects of management of development of construction industry at the context of sustainable development.