“You can’t decarbonize what you don’t understand. And when it comes to buildings, what we don’t understand is costing us more than we think.”
When we think about greenhouse gas emissions, our minds often jump to the obvious: smoke rising from chimneys, traffic jams, or maybe airplanes cutting across the sky. But have we ever realised that the very spaces we spend most our lives in are also contributing a substantial share of global greenhouse gas emissions? It is the buildings–where we live, work, learn, and gather. They are quietly shaping the climate crisis from behind the scenes.
From towering office blocks, shopping malls, and apartment complexes to single-family houses and retail spaces, buildings are not just passive structures but also active players in the carbon equation. Their impact extends beyond the energy consumed during their operational use. It includes emissions that already begin at the moment how raw materials—like cements, steel, timber, and many others are extracted, processed, and transported to the construction site. Not to mention, the running machines and equipment during construction are also part of the equation. Every step within these value chains contributes to the carbon footprint.
According to the UN Environment Program, buildings are responsible for around 37% of global CO2 emissions and 34% of global energy demand. These emissions come from two main sources: operational emissions and embodied carbon. Operational emissions are the result of daily energy use for spaces, including heating, cooling, lighting, and powering appliances. Whereas embodied carbon is hidden in the background. These emissions are embedded in the materials and construction processes across the building’s entire life cycle, from raw materials sourcing to demolition.
The hidden complexities behind measuring building emissions
Then, what makes building emissions become challenging?
Measuring and reducing building emissions may seem straightforward. For instance, we can easily mention switching the electrical appliances using energy-saving ones, upgrading the HCAC system, installing solar rooftops, getting green building certifications, and so on. However, the reality on the ground is far more complex.
Amid the many complexities of building emissions, the first challenge is clear: you can’t cut what you can’t see. Many companies still focus on what is easily tracked on such as energy bills, utility meters, and green certifications. While these actions show positive steps in building a decarbonization journey, they only scratch the surface. What often goes uncounted is the upfront embodied carbon. In fact, in many new buildings, embodied carbon can make up over 50% of total lifetime emissions. Yet fewer than 1% of projects are tracking it fully.
Even when companies want to track it, they quickly encounter another challenge: a fragmented ecosystem. The building’s value chain involves a cast of players such as developers, architects, contractors, asset managers, tenants, and investors. Each holds a different piece of the “carbon puzzle” yet rarely do they see a full picture. This fragmentation makes it harder to develop a unified net zero building strategy.
Another major hurdle lies in the intersection of timing, cost, and perception. Buildings are long-lived assets and the decisions made today, whether it’s the choice of HVAC systems, insulation, or construction materials, can lock in emissions for decades to come. Once the concrete is poured and the walls are up, going back to fix those choices becomes costly and disruptive. At the same time, opting for low-carbon materials and technologies often comes with a higher upfront price, despite offering clear long-term savings. For developers working under budget constraints or investors chasing short-term returns, that cost can be hard to justify.
And another equally fundamental, is the knowledge and capacity. While the urgency to decarbonize buildings and align with the goals of the Paris Agreement grows stronger, many professionals across the building value chain are still learning to navigate the language of carbon, such as scope 1, 2, and 3 emissions, whole life carbon assessments, embodied footprints, and science-based targets. This gap is not due to lack of willingness, but rather a rapidly evolving landscape where expectations are moving faster than the tools, training, and standards available to support them.
Then, where do we begin? The Role of Science-Based Targets
The issues outlined above are just a glimpse into the many complexities behind measuring building emissions. Then, our next question might be: “Where should we begin? “
Understanding and addressing the full carbon impact of buildings is no longer optional, it is a strategic necessity. Even though the journey can be overwhelming, the starting point is clear: Align with the science.
This is where the Science Based Targets initiative (SBTi) Building Criteria comes in. This framework is designed to provide tailored guidance for all stakeholders along the buildings value chain, including developers, landlords, owner-occupiers, property managers, or financial institutions to set credible, science-aligned climate targets by addressing not only operational emissions from building use, but also the embodied carbon often hidden in construction materials and processes. In short, it brings the entire life cycle of buildings into focus.
By following this guidance, each organization can define what emissions categories need to be counted, how to set emissions reduction pathways aligned with 1.5°C, and how to track and verify the progress.
So, what does it take to set the first science-based target for buildings?
Here are six essential steps companies can take to align their emissions reduction efforts with the science:
- Define the emissions boundaries
Begin by identifying which emissions are relevant across your value chain. This means understanding where emissions occur, whether under direct control (Scope 1), from purchased electricity (Scope 2), or indirectly from construction, materials, tenant activities, and other parts of the value chain (Scope 3). Mapping these categories provides the foundation for credible and robust target setting.
- Start with the Data you Have
By knowing your emissions boundaries, the next step is to try collecting the data. You don’t need perfect data to get started. Begin with what’s available. Even high-level estimates can help uncover emissions hotspots. Whole life carbon assessments don’t have to be perfect from the start—they can and should evolve over time.
- Determine future activity projections
Establish how your building portfolio is expected to grow or change overtime. This could be done by projecting the future floor area, occupancy, or portfolio size.
- Apply the right methodology
The SBTi Building Criteria leverages a Sectoral Decarbonization Approach (SDA), offering emissions intensity targets tailored to building types and geographies. Companies can use this approach for their buildings-related emissions. For other emission sources not covered under buildings, the general cross-sector guidance can be applied.
- Take a Whole Building Approach
Targets should cover the entire building, not just selected parts. This includes both landlord-controlled areas and tenant-managed spaces. Even if these areas are not fully controlled by the company, emissions associated with them still need to be accounted for. Overlooking one or the other will leave critical emissions unaccounted for.
- Model, disclose and submit
Use the SBTi Buildings Target-Setting Tool to model your decarbonization pathway. Companies can clearly disclose any assumptions, data sources, and methodology used. Once they are completed, then the building targets can be submitted for validation.
Beyond Validation: The Real Journey Begins
Achieving validation is a major milestone in a journey towards net zero building—but it’s not the finish line. In many ways, it marks the beginning of a deeper commitment. The real impact comes from what happens next. Starting from embedding climate targets into business strategy, transforming how buildings are designed, built, and operated, to creating a culture of accountability across the value chain.
Nevertheless, aligning with the science-based targets will give companies direction to ground climate action in a credible and measurable way. More importantly, it provides a common language that all key players across the building value chain can use to collaborate. This shared common goal is critical because no single player can solve building emissions alone. It will take a coordinated effort to turn low-carbon ambitions into real-world impact.
Start Now or Fall Behind Tomorrow
The pathway to net zero buildings is not without its challenges. But the delay only makes the transition harder and costlier. So let the real journey begin—brick by brick—towards buildings that not only house our lives but also protect our shared future.
At Bestari, we help companies take that first step and every step after, guiding you through the complexities of data, strategy, and science-based target-setting. Whether you’re just starting out or refining your existing roadmap, we’re here to turn ambition into action, and uncertainty into progress.
Let’s build better together!
Hit us through email at [email protected] for more information.
References:
United Nations Environment Programme. (2024). Global Status Report for Buildings and Construction: Beyond Foundations: Mainstreaming Sustainable Solutions to Cut Emissions from the Buildings Sector. UNEP.
World Business Council for Sustainable Development. (n.d.). Net-zero buildings: Where do we stand. WBCSD.
Lützkendorf, T., & Balouktsi, M. (2022). Embodied carbon emissions in buildings: Explanations, interpretations, recommendations. Buildings & Cities, 3(1), 964–973.
Al Shawa, B. (2022). Decarbonizing the building sector: Opportunities and challenges. Science Based Targets Initiative.
Science Based Targets initiative. (2025). Buildings sector science-based target-setting criteria (Version 1.1). SBTi.
World Green Building Council. Bringing embodied carbon upfront report.
