Setting the Scene
With buildings accounting for around 39% of global CO2 emissions (World Green Building Council) there is a clear and obvious need to decarbonise commercial building stock.
The Paris Agreement and IPCC 6th Assessment Report have both underlined the requirement to keep warming within a 1.5°C temperature rise if we are to avoid the worst effects of climate change. 1.5°C may not sound a lot but every fraction of a degree matters in the global fight to limit our impact on the planet and prevent severe climate disruption for generations to come.
The governments Building Energy Efficiency survey carried out way back in 2016 reported that 67% of energy consumption in commercial buildings was used to provide services such as lighting, heating, ventilation and cooling. In the years that have followed, these factors have unsurprisingly retained their titles as chief consumers of energy within buildings – however, we now have the technology to make wide-ranging, cost-efficient changes with the potential to yield huge energy savings and bring us closer to the end-goal of zero-carbon buildings.
A zero-carbon ready building is highly energy efficient and is the ultimate standard bearer when it comes to decarbonisation. Unfortunately, less than 1% of our existing building stock is currently zero-carbon ready – a figure that needs to change rapidly and hit the 25% mark by 2030 if we are realistically going to get anywhere near meeting 2050 net-zero commitments.
Understanding the SBTi
This brings us on to the Science Based Targets Initiative (SBTi) and the Sectoral Decarbonisation Approach (SDA). Set up to help organisations fully understand and implement the actions required to meet climate-based goals, the initiative uses science-based targets and sector specific guidance to enable businesses to seamlessly transition towards zero carbon.
The SBTi guidance for developing targets and the processes for validating them are based on the latest climate science and standards aligned with the Greenhouse Gas Protocol.
More than 4,000 businesses around the world are already working with the SBTi and the Initiative is encouraging companies from all sectors and of all sizes to join the movement and commit to setting a science-based target – particularly those in the highest emitting sectors. Setting a science-based target is achieved in five steps:
Once the initial commitment letter has been sent, organisations have 24 months to submit their target, which is then subject to an initial screening to ensure that basic criteria are met.
Buildings sector guidance
Each industry sector within the SBTi is given its own set of methodologies, tools and guidance in order to develop 1.5°C-aligned strategies and the buildings sector is one of 14 being targeted.
By setting emission reduction targets in line with established goals and defining appropriate decarbonisation strategies, companies in the buildings sector can help accelerate their transition to net-zero.
The drafting of sector specific guidance is now almost complete and is set to go live in the coming months but the three key objectives for the building sector have already been laid out:
The project has been following these six broad steps:
Approval of buildings sector guidance and publication of final deliverables is expected around September 2023, whilst resources developed as part of the project will be shared via joint capacity building activities (including webinars and/or workshops) and are expected to become available around October time.
Taking action
The unpalatable truth is that the global economy is currently falling short in its ambition to halve emissions by 2030 and achieve full net-zero by 2050. We all have a part to play in overcoming the biggest hurdles and it’s clear that those operating in the buildings sector need to take decisive action and look to decarbonise commercial buildings as a matter of great urgency.
Initiatives such as the SBTi represent a pathway towards progressive and meaningful change, allowing organisations to take the lead on decarbonisation and blaze a trail towards zero emissions. Reducing emissions in line with pre-set targets can save money, improve business resilience and future-proof growth, whilst demonstrating a commitment to innovation and sustainable business operations.
With commercial buildings being a significant energy consuming sector, it is crucial for property owners and operators to become more conscious about energy efficiency and examine ways to transition towards net-zero. It's no easy feat, which is why it's imperative to find the right set of partners to help on the journey.
For further information on science-based targets, visit the buildings category on the SBTi website.
As Principal Consultant at Beyond ESG, Danny Holmes is our data strategy expert, helping clients solve business problems with data, technology and pragmatic thinking.