The recent launch of the Science Based Targets Initiative (SBTi) framework for the construction sector marks a pivotal moment in the global effort to combat climate change. For chief sustainability officers and C-suite executives, understanding and embracing this framework is essential for driving meaningful progress toward a net-zero future.
Addressing the Climate Challenge
The buildings sector is a major contributor to global energy-related emissions, responsible for over a quarter of the total. As climate change accelerates, the impact on this sector becomes increasingly pronounced, with adverse weather conditions leading to costly construction delays. The SBTi’s new framework responds to these challenges with a strategic approach to decarbonization, setting science-based targets aligned with a 1.5°C global warming pathway.
Key Components of the Framework
The SBTi framework introduces four critical actions that building companies and financial institutions must adopt:
1. Stopping Fossil Fuel Installations:
By 2030, companies must commit to halting the installation of fossil fuel-based systems, including heating, cooking, power generation, and hot water equipment. This transition is crucial for reducing the sector’s reliance on fossil fuels and aligning with global climate goals.
2. Reducing In-Use Operational Emissions:
The framework emphasizes the need to lower emissions associated with a building’s energy use. In collaboration with the Carbon Risk Real Estate Monitor initiative (CRREM), the SBTi has developed regional pathways to set targets that reflect local power grids and building usage, ensuring that emissions reduction efforts are tailored and effective.
3. Reducing Upfront Embodied Emissions
With global floor area projected to grow by approximately 15% by 2030, particularly in developing economies, the framework requires targets for reducing embodied emissions. These are emissions associated with raw materials, manufacturing, transportation, and construction, highlighting the need for a comprehensive approach to emissions reduction across the entire lifecycle of buildings.
4. Retrofitting Inefficient Buildings:
Given that 80% of existing buildings are expected to remain in use until 2050, the framework stresses the importance of retrofitting to improve energy efficiency. The SBTi recommends that retrofitting efforts be more than doubled by 2030 to meet the International Energy Agency’s (IEA) Net Zero by 2050 Scenario.
Why This Matters for Executives
For chief sustainability officers and C-suite executives, adopting these SBTi criteria is not just about compliance; it’s about leading in an era where sustainability is a key driver of business success. The framework provides a clear path to meet ambitious climate goals, reduce operational costs, and enhance long-term resilience against climate-related disruptions.
Moreover, the new criteria enable companies to align with broader environmental, social, and governance (ESG) objectives, which are increasingly influencing investor decisions and stakeholder expectations. By integrating these targets into corporate strategy, businesses can position themselves as leaders in the transition to a sustainable economy.
The Path Forward
The SBTi’s framework equips the buildings sector with the tools needed to make significant strides towards net-zero. As an industry, it’s imperative to embrace these guidelines and commit to actionable steps that will drive substantial environmental benefits.
At Olive Gaea, we understand the complexities of meeting these targets and offer solutions through our Zero platform, designed to assist construction companies in achieving SBTi goals effectively. By collaborating with us, you can accelerate your journey toward sustainability and contribute to a net-zero future.
Let’s seize this opportunity to lead the change and build a sustainable world for future generations.
To book a consultation with our sustainability expert, click here: https://lnkd.in/dtNbjKVX
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