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.

Construction Sector - Scope 1, 2, and 3 Emissions Strategies

Construction companies can utilize renewable energy sources, target energy efficiency, and implement carbon capture to reduce scope 1 and 2 emissions. Sourcing electricity from renewable energy sources for offices on project sites is one of the first things construction companies typically do early in the net zero strategy. For this purpose, they can invest in the development of solar photovoltaic plants and other renewable energy infrastructure projects at construction sites and offices. Construction companies can also procure renewable energy from local sources such as wind farms, solar plants,and others.

To reduce scope 3 emissions, construction companies can use sustainable materials, manage the supply chain, adhere to frameworks and certifications, and implement digital solutions. If companies choose construction materials with a lower carbon footprint, Scope 3 emission is targeted. In addition, using recycled, reclaimed, or locally sourced materials reduces energy use and waste production.

Construction Sector - Net Zero Strategies of Leading Companies

A few construction companies evaluated in this report are Balfour Beatty, Skanska, and Vinci Construction, among others.

Balfour Beatty is working with supply chain partners to report and reduce the embodied carbon in materials they supply to the company. The company is also collaborating across the value chain to develop new solutions and technologies to drive net zero outcomes for customers. It is switching to renewable electricity across all its operations and is claiming that it is decarbonizing its plant and fleet.