Decarbonizing Construction
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Decarbonizing Guidanceconstruction for investors and developers to reduce embodied carbon Contents Foreword | 4 Executive summary | 5 Glossary | 7 1 Why embodied carbon matters for construction clients | 9 2 Future-proofing new construction projects | 15 3 How to use this report | 19 4 List of requirements | 26 A. Project owner’s internal policies and processes summary | 27 B. Concept design phase requirements summary | 29 C. Detailed design phase requirements summary | 31 D. Construction and procurement phase requirements summary | 32 5 Using the guidance with green building standards | 35 6 Using the guidance with different contract and delivery models | 40 7 Embodied carbon emissions and how to reduce them | 45 Annexes | 49 Decarbonizing construction - Guidance for investors and developers to reduce embodied carbon 2 This report was made possible with support from the Rockefeller Brothers Fund (RBF), Carbon Neutral Cities Alliance, Laudes Foundation, Google Inc, RAKLI, FPI France, SOM, Statsbygg and We Mean Business Coalition. The opinions and views of the authors do not necessarily state or reflect those of the these organization. Decarbonizing construction - Guidance for investors and developers to reduce embodied carbon 3 Foreword To meet the Paris Agreement Many companies have Lenders can link carbon objectives, it is essential recognized this potential and performance to their loans and to decarbonize economies are raising their climate action provide incentives. Property by 2050. For the built ambitions. Under the Glasgow developers can set carbon environment, this means Financial Alliance for Net Zero, performance requirements as reaching net-zero emissions over 160 firms, responsible part of the procurement process across all activities in the for more than USD $70 trillion for their projects. And lastly, all building and construction assets across the financial these firms occupy and manage system, meaning emissions system, have made public real estate themselves and can from energy use during commitments to accelerate develop policies for low-carbon building use as well as the transition to net-zero performance in their role as emissions from materials emissions by 2050 at the latest. tenants, thereby driving the production and construction The alliance is translating these change from the end-user side. processes – so-called commitments into measurable embodied carbon. targets. This report provides a resource to companies who want to set Alignment and collaboration Investors, lenders and requirements for embodied between all companies in the developers are deeply involved carbon reductions in projects building and construction in the development process for they finance and develop in system is crucial to reaching this real estate assets and efforts a performance-based way. It goal, as no stakeholder can do are underway to help them also references a selection of it alone. To achieve full system account for their “financed” emerging national regulations decarbonization, it is necessary emissions across different focusing on embodied carbon. to ensure each company asset classes, such as through And it provides examples focuses not only on its own the Partnership for Carbon of how to include circular emissions reductions, but also Accounting Financials. solutions in the design phase of on how it can actively support an These firms are therefore projects, which is an important overall net-zero transition of built increasingly looking to set economic, environmental and assets. Central to these efforts requirements for low-carbon social opportunity to catalyze is achieving net zero across solutions across the full life innovation and new business the entire life cycle, rather than cycle of built environment models to reduce embodied a silo approach that detaches projects, including reductions carbon. We encourage products in the system from one in emissions from building investors, developers, asset another. materials and the construction managers, lenders and tenants process. There are many to use this resource to set Financial institutions mobilize concrete actions that financial requirements for carbon capital for buildings and actors can take to reduce performance and pursue infrastructure and influence their the carbon impact of their sustainability strategies in construction. Their investment investments. Investors can the earliest phases of project and financing decisions provide adopt decarbonization policies planning and development. powerful incentives to shape the and set requirements for the real activities in the building system estate part of their investment and the behavior of all market portfolios. Asset managers can Roland Hunziker participants. support investors in setting and Director, Sustainable executing their strategies. Buildings & Cities, WBCSD Decarbonizing construction - Guidance for investors and developers to reduce embodied carbon 4 Executive summary Buildings and construction Project originators, investors and 3. Prioritize circularity – that is, are responsible for 38% of developers have both the power less new building and more global energy and process- and the responsibility to set the reuse and refurbishment. related carbon dioxide course of a project aligned with emissions. Approximately the Paris Agreement. 4. Design optimization to use a third of this, equivalent less material and to choose to 11% of the total, comes This report provides embodied materials with a low carbon from building products carbon reduction guidance and footprint. and materials and is known tools for project owners and 5. Low-carbon procurement as embodied carbon.1 As project teams, such as investors, to ensure acquisition of building operation becomes developers, owner-operators materials with a low carbon more efficient and energy and large tenants, as well as the footprint. grid efficiency improves, design teams and contractors working with them. estimates suggest embodied We have developed these to carbon will become the target specific embodied carbon It condenses over 50 leading construction sector’s reduction opportunities. We embodied carbon reduction dominant climate impact have evaluated each measure practices (requirements) across driver. This has made it the for embodied carbon savings all project life-cycle phases into focus of regulators and and cost impacts, and provide a single report. We have grouped market actors. detailed implementation each measure into one of the guidance. The increased level of scrutiny following five categories. given to carbon emissions also We have shortlisted the following 1. Create a carbon policy means that carbon is becoming core requirements (next page) that sets out consistent a risk factor that companies due to their high impact and requirements for all projects need to price into construction applicability in most contexts to follow. projects. Therefore, reducing for every investor and developer embodied carbon contributes to 2. Set targets and transparency to implement. The full list of climate change mitigation and is requirements for projects to recommendations is available in also good for a company’s and meet across all their phases. the report. a country’s long-term economic vision. Decarbonizing construction - Guidance for investors and developers to reduce embodied carbon 5 Companies can use the Environmental Design), BREEAM This report is not a guide to requirements as they stand or (Building Research Establishment developing new low-carbon adapt them to specific needs. Environmental Assessment cities or districts; the focus here The requirements are flexible and Method) or the Greenhouse Gas is on a project level. It promotes easily combinable with different (GHG) Protocol. low-carbon construction on green building certification or a material- and technology- sustainability reporting systems, This report focuses on new neutral basis and supports a level such as GRESB (Global ESG buildings, but organizations playing field for solutions. Benchmark for Real Assets), can adapt much of the content LEED (Leadership in Energy and and use it for infrastructure and renovations as well. Core requirements A. Project owner’s internal policies and processes A01 Create embodied carbon related requirements for all projects A08 Report embodied carbon alongside other carbon emissions annually A10 Evaluate the possibility of refurbishing existing buildings B. Concept design requirements B01 Propose a life-cycle carbon or embodied carbon target for the project B07 Investigate suitability of low carbon structural material options B08 Develop alternative designs and carbon and cost evaluations C. Detailed design requirements C04 Materials efficiency optimization C05 Embodied carbon and cost factored detailed design options C08 Evaluate alternatives for the top ten highest carbon products D. Construction and procurement requirements D01 Demonstrate meeting embodied carbon targets with final quantities D06 Minimizing and recycling construction and demolition waste D09 Contractor to buy and install materials meeting set carbon limits Decarbonizing construction - Guidance for investors and developers to reduce embodied carbon 6 Glossary This report uses the definitions • Assessment of • Core rules for environmental for carbon as indicated in the environmental performance product declarations of World Green Building Council’s of buildings. construction products (WorldGBC) Bringing Embodied and services ISO 21930 carbon upfront2 report and • Calculation method standards