Constructing a Net Zero reality. By Jeff Blaylock
The buildings and construction sector will not meet targets to be Net Zero by 2050, and according to the UN Environment Programme (UNEP), “the gap between the actual climate performance of the sector and the decarbonisation pathway is widening”.
UNEP says the sector is critical to addressing the climate crisis, yet it is “not making the deep systemic changes needed to get on the path to this goal”.
Understanding the entire lifecycle of buildings is central to a construction achieving a successful green transition.
Only when companies identify and measure all their carbon emission sources can they start to take steps to reduce them.
Importantly, the industry needs to consider both operational and embodied carbon. The former is generally easier to assess and reduce since it relates to use of a building, and occupants can improve energy efficiency.
Embodied carbon meanwhile, which the World Green Building Council predicts could account for half of the entire carbon footprint of new construction by 2050, relates to the greenhouse gas emissions associated with construction including material extraction, manufacturing, transportation and assembly.
It is therefore much harder to influence embodied carbon emissions post construction and according to UNEP has been “under-addressed in strategies to reduce building emissions”.
Building better
According to a report directed by CRREM, the construction of new buildings accounts for up to 70 per cent of embodied carbon.
The first step in addressing embodied carbon is to build more efficiently from the outset. In addition to implementing measures in new and existing buildings, it is crucial to prioritise material efficiency and structural optimisation in design.
This will ensure that every material choice contributes to a more sustainable, low-carbon future in the built environment. For example, modular construction can reduce energy use by up to 67 per cent compared to traditional methods.
Addressing embodied carbon requires a strategic approach focusing on key actions throughout the lifecycle of buildings. Implementing a lifecycle assessment helps identify and minimise carbon impacts at every stage, from production and construction to end of life.
Key actions include selecting low-carbon materials, adopting modular construction methods, retrofitting existing buildings rather than new builds, and reusing materials.
Tools like Nooco, a Deepki solution, can enhance these efforts by providing detailed insights into the carbon footprint of different building materials and solutions, enabling more informed decisions. By integrating these practices, the real estate sector can make significant strides in reducing embodied carbon and moving towards a more sustainable future.
Retrofitting to reduce carbon
Existing buildings are not often energy efficient, but targeted retrofits can help reduce operational emissions, lowering their overall carbon footprint.
Retrofits or renovations of existing buildings that aim to reduce the environmental impact of a built area are costly yet necessary investments in many buildings’ life cycles.
Failure to embark on a retrofit strategy not only risks real estate owners falling foul of ever more stringent environmental regulations, but also sees their buildings at risk of becoming “stranded assets” – buildings that have lost a significant portion of their value due to their poor environmental performance and inability to meet evolving sustainability standards. This can result from factors such as increased operating costs due to inefficient systems, difficulty in attracting tenants who increasingly prioritise sustainability, and failure to comply with regulations. Essentially, stranded assets become liabilities rather than investments.
However, retrofitting is not straightforward and may also contribute to carbon emissions as renovations invariably demand new materials and additional energy use.
Property owners and their construction partners need to have a clear plan in place based on thorough analysis of the evidence to understand the best course of action that will demonstrably reduce both embodied and operational carbon emission in the future.
From challenge to opportunity
Reliable ESG data is the cornerstone for driving successful decarbonisation across the construction and buildings sector – without it, there are no meaningful insights into a building’s environmental impact, hindering the ability to develop and implement effective carbon pathways. No data means no insights, and no insights means no action – a critical gap that prevents the sector from achieving its net-zero goals.
At present, the real estate market lacks a standardised methodology to assess the gain or loss in asset value due to its environmental performance, and there are inconsistencies in global policymakers’ approach to meeting net-zero targets.
However, technology is emerging as a powerful lever, with innovative platforms and SaaS solutions transforming how real estate asset managers handle ESG data. The aim is to leverage environmental performance data to improve real estate valuation and inform construction and retrofitting strategies.
The Intergovernmental Panel On Climate Change is clear that the buildings and construction sector can make a material difference to carbon emissions if it acts now. While the challenges are significant, the opportunities to overcome them have never been greater, and the dream of hitting net-zero targets may yet become a reality.
How to build better
Retrofitting – reusing and recycling buildings during the operation and use stage rather than constructing new ones offers a straightforward solution to tackling embodied carbon in buildings.
Choose low-carbon concrete mixes – concrete production typically relies on powdered coal or natural gas as fuel, consuming vast energy and releasing significant CO2 emissions. Using alternatives during the construction process makes a notable difference to harmful emissions.
Select less carbon-intensive material – when retrofitting existing buildings or constructing new buildings, more sustainable, lower-carbon materials are crucial in reducing a building’s embodied carbon footprint.
Prioritise the reuse of materials and products – building materials represent a critical focus for reducing a building’s carbon footprint. Two key strategies are retention and reuse, which avoid the introduction of new carbon by preserving existing structural elements. Retention and reuse are important during construction, retrofitting and the end-of-life stages of a building.
For a list of the sources used in this article, please contact the editor.
Jeff Blaylock is Head of Delivery UK at Deepki. Founded in 2014, Deepki has developed a SaaS solution that uses data intelligence to guide real estate players in their net-zero transition. The solution leverages customer data to improve assets’ ESG (Environmental, Social and Governance) performance and maximise asset value. Deepki operates in 52 countries, with over 400 team members across offices in Paris, London, Berlin, Milan and Madrid. The company serves clients including Generali Real Estate, SwissLife Asset Managers and the French Government, helping to make their real estate assets more sustainable at scale.