Construction Sector Net Zero Strategies Thematic Research 2024 - ResearchAndMarkets.com

The "Net Zero Strategies in the Construction Sector - Thematic Research" report has been added to ResearchAndMarkets.com's offering.

The construction industry stands at a critical juncture in the battle against climate change, bearing a significant share of responsibility due to its considerable carbon footprint. A comprehensive review of the sector's current state highlights that the built environment is responsible for nearly 39% of the world’s gross annual carbon emissions. Among the key contributors are cement and concrete production, and the utilization of steel, spotlighting the urgency for the construction sector to implement effective net zero strategies.

Improved Emissions Reporting and Targets

Encouragingly, recent reports indicate an increase in transparency and commitment within the industry. Of the 20 construction majors studied, 14 are now fully reporting their direct and indirect emissions (Scope 1 and Scope 2) as well as their value chain emissions (Scope 3) for 2022. This demonstrates a marked improvement from only two companies making such disclosures in 2019. Furthermore, the adoption of emission reduction targets is gaining momentum, with 17 companies establishing short-term objectives, of which eight meet the rigorous standards of the Science Based Targets Initiative (SBTi).

Addressing Emissions Across All Scopes

While strides have been made in reducing Scope 1 and Scope 2 emissions originating from direct operational activities, the construction sector acknowledges that most emissions are embedded in the wider value chain—Scope 3. These are driven by the production and transportation of materials, and the actual use of buildings and infrastructure once completed. To confront this challenge head-on, transparency, and collaboration with suppliers and logistics partners are pivotal. Construction entities are urged to critically evaluate their suppliers and material choices, with the aim of shortening the value chain and fostering sustainable practices.

Commitment to Net Zero Pathways

While many companies are concentrating on actionable short-term targets, a subset of the construction sector is ambitiously striving for net zero across all scopes. Forward-thinking strategies include a shift towards sourcing renewable energy for site operations and encouraging greater energy efficiency across the board.

Collaborative Efforts for Supply Chain Decarbonization

It's increasingly apparent that managing and upgrading the construction supply chain is essential for meaningful reduction of Scope 3 emissions. Companies are called upon to form strong alliances with their suppliers, ensuring that practices align with low-carbon objectives and that innovations in energy-efficient technologies are pursued and implemented.

The meticulous analysis within the construction sector conveys that while challenges remain, there is a distinct movement towards sustainable practices, transparency in reporting, and setting tangible targets for emission reductions. This concerted effort marks a positive trajectory towards achieving net zero goals, with the potential for a significant impact on global emissions while securing the future resilience of the construction industry.

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