The Science Based Targets initiative launches a framework for companies and financial institutions in the building’s value chain to align with 1.5°C emissions reduction targets.
A comprehensive decarbonisation framework has been released by the Science Based Targets initiative (SBTi) to accelerate the building sector’s transition to net zero emissions. The recently released Buildings Sector Science-Based Target-Setting Criteria, offers a clear path for companies and financial institutions involved in the building industry to harmonise their operations with emissions reduction targets that are in line with the goal of limiting global warming to 1.5°C.
The buildings sector, which includes energy used for constructing, heating, cooling and lighting homes and businesses, as well as the appliances and equipment installed in them, accounts for over a quarter of global energy consumption and emissions. That puts the sector in a tricky position of being both a significant contributor to climate change and increasingly vulnerable to its impacts.
To top it off, construction delays due to adverse weather are also costing billions of dollars worldwide, underscoring the urgent need for action within the industry. According to The International Energy Agency, buildings matter for clean energy transitions because the long lifetime of structures, heating and cooling systems, and other appliances, design and purchasing decisions made today will shape energy use for many years to come.
“Existing technologies can deliver significant energy and cost savings and other benefits, but stronger policy support such as minimum performance standards and building energy codes will be required to put the buildings sector on track with the Net Zero Emissions by 2050 Scenario,” the IEA stated.
That brings us to the new SBTi framework that covers global 1.5°C pathways for upfront embodied emissions, including materials production and construction of new buildings. The SBTi’s framework takes a ‘whole building approach’, covering all energy consumption and fugitive emissions.
The strategy is designed to enable businesses to play their part in preventing the catastrophic impacts of climate change while addressing the specific challenges faced by the buildings sector.
Alberto Carrillo Pineda, Chief Technical Officer of the SBTi, emphasised the critical role of the new framework: “This sector now has the tools to build towards net zero – companies and financial institutions must take immediate action. Decarbonising both old and new buildings is paramount to tackling climate change. We call on these businesses to lead the net zero transformation.”
SBTi outline four key actions under the new framework for companies and financial institutions in the buildings value chain:
- Stop fossil fuel installations: Companies must publicly commit to stopping the installation of fossil fuel-based heating, cooking, power generation and hot water equipment by 2030 at the latest.
- Reduce in-use operational emissions: The SBTi collaborated with the Carbon Risk Real Estate Monitor initiative (CRREM) to develop regional pathways for in-use emissions, reflecting variations in local power grids and building usage patterns.
- Reduce upfront embodied emissions: With global floor area expected to grow by approximately 15% by 2030, the criteria require companies to set targets for reducing embodied emissions from raw materials, manufacturing, transportation and construction.
- Retrofit inefficient buildings: Given that 80% of current buildings are expected to remain standing until 2050, the framework recommends companies commit to implementing energy efficiency improvements to decarbonise existing structures.
The framework was developed through extensive consultation with an independent Expert Advisory Group comprising companies, financial institutions, non-profit and multilateral organisations. It also underwent a two-month public consultation and a four-month pilot test.
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Patrick Ho, Head of Sustainable Development at Swire Properties, emphasised the practical benefits of the new criteria: “Crucially, the introduction of the “whole building approach” – which includes both landlord and tenant-controlled spaces within the target-setting boundary – enhances accountability for emissions reduction and encourages collaboration between landlords and tenants in decarbonisation efforts.”
This framework represents a major achievement in the worldwide endeavour to address climate change. By adopting science-based targets, companies in the buildings sector can establish themselves as leaders in the transition towards net zero, playing a crucial role in creating a future that is both resilient and sustainable.
Don’t miss sustainability leaders from construction giants BAM Infra Nederland and Wavin, discussing the future of sustainable buildings at the upcoming Sustainability Expo Europe. Taking place on October 1-2 at RAI Amsterdam, this event brings together over 500 senior sustainability professionals, sharing insights into the essential actions businesses must take to achieve sustainability. Register your place now!
