Strategic Intelligence: Net Zero Strategies in Construction (2024)
Description
Strategic Intelligence: Net Zero Strategies in Construction (2024)
Summary
Why construction companies need a net zero strategy > All major economies have committed to reducing their greenhouse gas (GHG) emissions, with advanced economies aiming for net zero emissions by 2050. This will prompt construction companies to lower the carbon footprint and embodied carbon levels of buildings.
Sustainable materials are needed to reduce supply chain emissions > Innovations in materials with low-carbon concrete and green steel can reduce the embodied carbon of construction projects. Integration of renewable and bio-based materials into construction, like timber and landscaping, is growing in popularity.
Low-carbon fuels are reducing emissions from construction operations > Construction firms are tackling operational emissions by displacing fossil fuel-powered equipment and increasing renewable energy consumption.
Energy use within buildings is a significant part of construction companies’ value chain emissions > Construction companies can improve energy efficiency over a building’s lifetime with LED light fittings, high-efficiency heating, ventilation, and air-conditioning systems, smart energy controls, on-site energy generation, and insulation.
Who is winning the race to net zero? > Emissions reporting among construction companies has improved in recent years, with 71% of 17 leading construction companies analyzed reporting Scope 1, 2, and 3 emissions in 2023. Since 2021, Lendlease, Ferrovial, and Skanska have made the biggest reductions in Scope 1 and 2 emissions.
All major economies have committed to reducing their greenhouse gas (GHG) emissions, with advanced economies aiming for net zero emissions by 2050. This will prompt construction companies to lower the carbon footprint and embodied carbon levels of buildings.
The construction industry is concentrating on three main strategies to reach these targets -
The construction sector is concentrating on three main strategies to reach net-zeroSustainable materials to address Scope 1 emissions. Construction firms are exploring using sustainable and low-carbon materials in projects, while targeting innovations, including removing clinker from concrete. Alternative fuels and electrification to tackle Scope 1 and 2 emissions.Construction firms are phasing out fossil fuel-powered equipment and increasing renewable energy use. Energy efficient buildings to address Scope 3 emissions.This will being achieved by fitting new buildings with renewable energy sources, reducing the proportion of energy wasted due to poor insulation, and retrofitting existing buildings with energyconserving features. Scope
Summary
Why construction companies need a net zero strategy > All major economies have committed to reducing their greenhouse gas (GHG) emissions, with advanced economies aiming for net zero emissions by 2050. This will prompt construction companies to lower the carbon footprint and embodied carbon levels of buildings.
Sustainable materials are needed to reduce supply chain emissions > Innovations in materials with low-carbon concrete and green steel can reduce the embodied carbon of construction projects. Integration of renewable and bio-based materials into construction, like timber and landscaping, is growing in popularity.
Low-carbon fuels are reducing emissions from construction operations > Construction firms are tackling operational emissions by displacing fossil fuel-powered equipment and increasing renewable energy consumption.
Energy use within buildings is a significant part of construction companies’ value chain emissions > Construction companies can improve energy efficiency over a building’s lifetime with LED light fittings, high-efficiency heating, ventilation, and air-conditioning systems, smart energy controls, on-site energy generation, and insulation.
Who is winning the race to net zero? > Emissions reporting among construction companies has improved in recent years, with 71% of 17 leading construction companies analyzed reporting Scope 1, 2, and 3 emissions in 2023. Since 2021, Lendlease, Ferrovial, and Skanska have made the biggest reductions in Scope 1 and 2 emissions.
All major economies have committed to reducing their greenhouse gas (GHG) emissions, with advanced economies aiming for net zero emissions by 2050. This will prompt construction companies to lower the carbon footprint and embodied carbon levels of buildings.
The construction industry is concentrating on three main strategies to reach these targets -
- Sustainable materials to address Scope 1 emissions. Many construction companies are exploring using sustainable and low-carbon materials in projects.Innovations are growing, including removing clinker from concrete, thereby lowering the amount of carbon associated with the process.
- Alternative fuels and electrification to tackle Scope 1 and 2 emissions. Construction firms are phasing out fossil fuel-powered equipment and increasing renewable energy use to tackle Scope 1 and 2 emissions.
- Energy-efficient buildings to address Scope 3 emissions.This is being achieved by fitting new buildings with renewable energy sources, reducing the proportion of energy wasted due to poor insulation, and retrofitting existing buildings with energy conserving features.
The construction sector is concentrating on three main strategies to reach net-zero
- This report offers a comprehensive analysis of net zero strategies within the construction industry, highlighting the key approaches being implemented by companies to reach this goal.
- It features prominent construction companies making significant progress towards achieving net zero emissions, along with detailed case studies showcasing specific strategies in action.
- Additionally, the report presents detailed Scope 1, 2, and 3 emissions data for 20 major construction companies, providing valuable insights into their environmental impact reduction efforts.
- GlobalData’s strategic intelligence ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
- This report is essential reading for senior executives to understand how the construction industry is striving towards net zero.
Table of Contents
52 Pages
- Executive Summary
- Why Construction Companies Need a Net Zero Strategy
- Strategy 1: Sustainable Materials
- Strategy 2: Alternative Fuels and Electrification
- Strategy 3: Energy-Efficient Buildings
- Who is Winning the Race to Net Zero?
- Glossary
- Further Reading
- Our Thematic Research Methodology
- Contact Us
- List of Tables
- Table 1, p.6: Net zero targets of 20 selected major construction companies
- Table 2, p.10: GHG emissions and targets of highest-emitting countries
- Table 3, p.15: Non-renewable materials, transition materials, and renewable and bio-based materials
- Table 4, p.16: Methods for decarbonizing cement and concrete
- Table 5, p.26: Skanska’s share of renewable energy out of total electricity from 2019-2023
- Table 6, pp.34-35: Construction companies' short-term emissions targets
- Table 7, pp.36-37: Construction companies' long-term emissions targets
- Table 8, p.38: Scope 1 & 2 emissions by company, 2018-2023, t CO2 equivalent, ranked by change between 2021 - 2023
- Table 9, p.39: Scope 3 emissions by company, 2019-2023, tCO2 equivalent, ranked by number of reporting years
- Table 10, pp.41-43: Glossary
- Table 11, p.45: Further Reading
- List of Figures
- Figure 1, p.8: Where do corporate green house gas emissions come from?
- Figure 2, p.9: A typical net zero strategy
- Figure 3, p.10: GHG emissions and reduction targets, 1970 to 2070
- Figure 4, p.12: Emissions across the construction value chain
- Figure 5, p.14: Global energy-related emissions by industrial sector, 2022
- Figure 6, p.19: Sustainable material patent filings, 2019 - Q3 2024
- Figure 7, p.23: Top 10 companies in the construction industry mentioning HVO in company filings, 2020 - Nov 2024
- Figure 8, p.25: Share of renewable energy use out of total electricity consumption for the top 10 construction firms and OEMs by market cap, 2023*
- Figure 9, p.27: Ferrovial's share of renewable energy use out of total energy consumption by region, 2023
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