Carbon footprint in the construction industry: meaning, challenges and the future
Table of content
Carbon footprint reporting in the construction industry
Carbon footprint reporting by construction companies and building material manufacturers is essential for several reasons. First and foremost, monitoring and controlling emissions at every stage of the supply chain is fundamental to global greenhouse gas emission reductions. In the context of the Paris Agreement, which calls for limiting global warming to well below 2 degrees Celsius, the actions of individual companies have significance globally. These actions contribute to broader climate goals, where any reduction in emissions, even at the local level, is reflected in global results.
Transparency in carbon footprinting is becoming increasingly required by investors, customers, and regulators. Accurate reporting builds trust and a positive image of a company as environmentally responsible. Today’s market places a premium on transparency, and companies that openly communicate their emissions reduction efforts gain credibility. They also gain a competitive advantage, as investors and customers increasingly choose companies that strive for sustainability.
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Accurate emissions data allows companies to identify the most carbon-intensive processes and implement effective emission reduction strategies. This process is key to innovating and introducing more efficient technologies and practices. With precise measurements, companies can focus on the most problematic areas and implement specific solutions that will bring real environmental and financial benefits.
Effective emissions management can lead to significant financial savings, especially over the long term. For example, reducing energy consumption or optimizing production processes can bring tangible economic benefits. Companies can gain not only by cutting operating costs but also by avoiding future fees and penalties associated with excessive emissions.
Many countries are introducing regulations requiring companies to report greenhouse gas emissions. Companies that fail to meet these requirements can face legal and financial sanctions, which can affect their business and reputation. These regulations are designed not only to control emissions but also to encourage companies to act more responsibly to protect the environment. Adhering to these regulations therefore becomes not only a legal necessity but also a strategic step towards sustainable development.
Motivations for calculating carbon footprint
A carbon footprint is the total amount of greenhouse gas emissions, typically measured in tons of carbon dioxide equivalent, and is the accepted method for calculating the environmental impact of a given entity. Reducing it influences the fight against climate change. We distinguish between a company’s carbon footprint, the carbon footprint of a product throughout its life cycle, and an individual’s carbon footprint. Calculating the carbon footprint of a building is a challenging but entirely feasible process.
Construction companies have many reasons to measure their carbon footprint, driven by both external and internal factors.
1. Regulatory pressure
Many countries are introducing regulations regarding GHG emissions reporting. Construction companies must comply with these requirements to avoid legal and financial penalties.
2. Investor and customer expectations
More investors and customers are paying attention to the environmental aspects of projects. Transparency in carbon footprint is becoming a key factor in market competitiveness.
3. Financial benefits
Measuring the carbon footprint allows companies to identify the most emission-intensive processes and materials, enabling actions aimed at their reduction. Effective emission management can lead to significant financial savings.
4. Image and reputation
A conscious approach to managing the carbon footprint builds a positive image of the company as socially and environmentally responsible, attracting environmentally conscious customers and investors.
Challenges and future directions
Despite the numerous benefits associated with reporting carbon footprints, construction companies face many challenges. Collecting accurate and complete data on emissions throughout the supply chain is complex and requires advanced management systems and collaboration with suppliers. Implementing these systems and training personnel to operate them represents a significant cost and organizational challenge, especially for smaller companies.
Implementing emission monitoring and reporting systems involves costs that can be substantial. However, these investments often pay off in the long term through savings and improved efficiency. Companies that invest in emission management technologies can not only reduce their operational costs but also gain a competitive advantage in the market.
Learn why reducing your carbon footprint is essential for business.
The regulations regarding greenhouse gas emission reporting are complex and vary by country and region. Companies must stay updated with current regulations and adjust their reporting practices to comply with legal requirements. Integrating new emission monitoring systems with existing management systems can pose technological and organizational challenges, necessitating proper staff training and process adaptation.
Despite these challenges, the future of carbon footprint reporting in the construction industry looks promising. More companies recognize the necessity for transparency and ecological responsibility. Emission monitoring technologies and tools are becoming increasingly advanced and accessible, making it easier for companies to manage their carbon footprint. Green building, which emphasizes sustainable development, energy efficiency, and minimizing environmental impact, will play an increasingly significant role in the future of the construction industry. Companies that invest in green technologies and approaches will gain a competitive edge and have better prospects for the future.
Carbon footprint of the building
It is challenging to definitively pinpoint the carbon footprint of a building as it depends on numerous factors. The production of building materials consumes natural resources and energy, contributing to global warming. Population growth increases the demand for buildings, impacting greenhouse gas emissions.
Cement production accounts for 3% of global CO2 emissions, primarily due to the decomposition of calcium carbonate. The high carbon footprint of building materials largely results from the type of energy used during production. In Poland, 77% of energy comes from coal, leading to high emissions.
Energy-intensive buildings account for about 50% of resource extraction and use, and over 30% of waste in the EU. They consume 40% of energy and generate 36% of greenhouse gas emissions related to energy production. The construction sector is responsible for approximately 38% of global CO2 emissions, with 28% from building operations and 10% from the construction industry itself.
Buildings generate 70-80% of emissions during use and maintenance, while building materials account for one-third of the carbon footprint at the construction stage. Concrete and steel, primarily used in foundation slabs, contribute the most to these emissions.
Challenges related to the embedded carbon footprint, particularly in the production of cement, steel, aluminum, and glass, are being addressed through new technologies and changes in production processes. Cement, responsible for 8% of global CO2 emissions, is becoming more eco-friendly through alternative fuels, increased use of mineral additives, and CCS (Carbon Capture and Storage) technologies.
The importance of the supply chain in the carbon footprint
The supply chain in the construction industry is a complex system involving numerous stages and entities. Each of these stages generates greenhouse gas emissions, starting from the extraction of raw materials such as cement, steel, wood, and glass, through their processing, production of building components, transportation, and finally, assembly on the construction site. CO2 and other greenhouse gases are emitted during each of these processes.
Raw material extraction
The extraction process is one of the most energy-intensive stages of the construction supply chain. Cement production, a crucial component of concrete, is responsible for approximately 8% of global CO2 emissions.Processing and production
After raw materials are extracted, they undergo processing and production into building materials, which is also highly emissive. For example, steel production accounts for around 7-9% of global CO2 emissions.Transportation
The transportation of building materials from their production sites to their use locations is a significant source of emissions. Depending on the distance and means of transport, emissions can vary significantly.Assembly and construction
In the final stage of the supply chain, materials are assembled and used in construction, which also involves both direct and indirect emissions.
The future of green building
The future of green building is brimming with potential, driven by the growing recognition of sustainable development and the need to reduce greenhouse gas emissions. In 2023, green building accounted for approximately 37% of global energy-related emissions, making it a critical sector in the fight against the climate crisis. More and more buildings are achieving eco-certifications, and technologies such as smart energy management systems and renewable energy sources are becoming commonplace. An example of innovation in this field is carbon-absorbing concrete.
In addition to environmental benefits, green building also offers economic savings. Buildings with green building certifications typically generate lower operational costs due to more efficient use of energy and water. According to the WorldGBC (World Green Building Council), sustainable buildings can reduce energy consumption by 30-50% and water usage by up to 40%. Many countries are implementing new regulations to support green building, such as the European Union, which aims to have net-zero emission buildings by 2030.
Despite progress, green building faces challenges such as high initial costs for investing in eco-friendly technologies and the lack of uniform standards and certifications worldwide. Nevertheless, technological innovations, the increasing number of certified buildings, and political support will be crucial for the further development of this sector. Overcoming these challenges will be essential to achieve sustainable development goals.
Green building and the environmental impact
One of the most significant trends in the construction industry is the development of green building, which encompasses projects designed, constructed, and operated with minimal climate impact and environmental friendliness in mind.
1. Low Carbon Footprint Materials
Green building utilizes materials with a low carbon footprint, such as recycled materials, wood from certified sources, and innovative materials like low CO2 emission concrete.
2. Energy-Efficient Technologies
Technologies that reduce energy consumption in buildings are promoted, such as energy management systems, high-efficiency insulation, solar panels, and heat pumps.
3. Design and Urban Planning
Sustainable design includes planning buildings and infrastructure to minimize environmental impact, optimizing urban layouts, and incorporating urban greenery.
4. Certifications and Standards
Green buildings are often certified according to international standards such as LEED or BREEAM, which confirm their high ecological and energy efficiency standards.
Decarbonization and the construction sector
Selena Group experts believe that decarbonizing construction is impossible without reducing the carbon footprint of building materials. Type III environmental declarations and the Energy Efficiency in Buildings Directive are key. These tools help manufacturers assess and reduce the carbon footprint of their products. A popular approach is “mass balance,” which assesses the contribution of bio, recycled, and traditional raw materials, especially when confirmed by ISCC Plus certification.
To achieve net zero emissions by 2050, CO2 emissions from buildings must halve by the end of the decade, and the building sector’s indirect emissions must be cut by 60%. Currently, three-quarters of buildings in the EU are energy-inefficient. In Poland, about 250,000 buildings are planned to be thermally modernized annually.
Summary
In summary, the carbon footprint of the construction industry represents one of the most significant challenges of the modern world. The production of building materials such as cement and steel, along with energy consumption during building operations, substantially contributes to greenhouse gas emissions. Calculating the carbon footprint of buildings, including both operational and embodied carbon footprints, is becoming increasingly crucial in the pursuit of climate neutrality. The obligation to calculate the carbon footprint and the legal regulations in sustainable construction, such as the European Commission’s Green Deal, aim to reduce greenhouse gas emissions and promote materials with a low carbon footprint.
The construction sector is responsible for a significant portion of global CO2 emissions, making the reduction of greenhouse gas emissions in the building sector a necessity. Population growth and the demand for new buildings increase emissions; however, new technologies and innovative building materials can help reduce the carbon footprint of buildings. Using low-emission concrete and alternative fuels in cement production are just some of the actions aimed at reducing emissions.
Achieving climate neutrality goals requires cooperation among architects, investors, and building material manufacturers. The obligation to calculate the product’s carbon footprint and the use of environmental declarations help monitor and reduce emissions at every stage of the building’s lifecycle. The introduction of legal regulations and increased environmental awareness among clients and designers is crucial for creating more environmentally friendly solutions in construction.