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Environmental sustainability in the building sector

ÌÇÐÄÆÆ½â°æ trend report on environmental sustainability in the real estate and construction sectors

The record-high temperatures of summer 2023 issued yet another reminder about the urgency to act on climate change. The building sector not only contributes to 40 percent of the global greenhouse gas emissions, but also faces physical and transition risks. The groundwork to reduce the environmental footprint of buildings has already been laid, with efforts to improve data collection and transparency, introduce incentives and market-based instruments, and establish regulations. Though more work is needed, the first steps toward decarbonization are in progress.

This report explores some of the most noteworthy sustainability trends within the construction and real estate industry, focusing on climate action, benchmarking, sustainability in construction, and the energy efficiency of buildings.

Table of contents

The need for sustainability

  • Carbon footprint of the building sector
  • Risks and solutions
  • Physical risks
  • Transition risks
  • Net-zero goals
  • Regulatory instruments
  • Market-based instruments

Attitude toward environmental sustainability
  • The path to net zero
  • Commercial occupiers’ perspective
  • Investors’ perspective
  • Homebuyers’ perspective
  • Energy-efficient mortgages

Futureproofing the industry
  • ESG benchmarking
  • Breakdown of GRESB components
  • Global comparison
  • Americas
  • Europe
  • Asia

Sustainability in construction
  • Emissions throughout a building’s lifecycle
  • Most polluting construction materials
  • Decarbonizing concrete
  • Decarbonizing steel
  • Construction and demolition waste

Energy efficiency of buildings
  • Green building certifications
  • Energy usage of buildings
  • Designing for energy efficiency
  • Heat pumps
  • Other measures to increase energy efficiency
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