Buildings

New guidance for the buildings sector

The Buildings Sector Science-Based Target-Setting Criteria is the science-based decarbonization framework for corporates and financial institutions that own, develop and finance buildings. The framework sets 1.5°C-aligned emissions reduction targets for the buildings industry to overcome current climate challenges and create a net-zero future.

• Read the SBTi Buildings Criteria
• Read the SBTi Buildings Explanatory Document
• Read the SBTi Buildings Criteria Assessment Indicators
• Download the SBTi Buildings Target-Setting Tool

Why take action?

The buildings sector is a major contributor of emissions worldwide, accounting for over a quarter of energy-related emissions, and is deeply impacted by the climate crisis. Construction delays due to adverse weather are already costing billions of dollars globally.

The global floor area is expected to grow ~15% by 2030, nearly 80% of which will be in developing economies, meaning emissions will rise dramatically if no decarbonization efforts are made in the sector.

The SBTi’s Buildings Criteria takes a ‘whole building approach’ - covering all energy consumption and fugitive emissions (e.g. leakage) from buildings’ operations - to enable businesses to play their part in preventing the catastrophic impacts of climate change.

Key requirements and recommendations of the SBTi Buildings Criteria

1. Reduce in-use operational emissions: In-use emissions are those associated with buildings’ energy use. The SBTi collaborated with the Carbon Risk Real Estate Monitor initiative (CRREM) to develop regional pathways for in-use emissions so that targets reflect variations in local power grids and how buildings are used.
2. Reduce upfront embodied emissions: Companies must set a target to reduce upfront embodied emissions, i.e. those from raw materials, manufacturing, transportation of construction materials, and construction activities.
3. Stop fossil fuel installations: Public commitment to halting the installation of new fossil fuel-based heating, cooking, power generation and hot water equipment from 2030 at the latest.
4. Retrofit inefficient buildings: The SBTi recommends companies commit to implement energy efficiency improvements to decarbonize existing buildings. According to the IEA’s Net Zero by 2050 Scenario, retrofitting needs to more than double by 2030.

Applying best practice in the buildings sector

In 2015, the SBTi developed the Sectoral Decarbonization Approach (SDA), a scientifically-informed method for companies to set greenhouse gas reduction targets necessary to stay within a 2°C temperature rise above pre-industrial levels. This led to the development of a 2°C and a well-below 2°C pathway.

The new 1.5°C-aligned methodologies, tools and guidance developed as part of the SBTi Buildings Project build on the previous SDA methodology, and provide the sector with the tools needed to lead the transformation to a net-zero economy. This includes:

• A target setting tool that helps formulate intensity-based targets using the SDA, including:
  • 1.5°C-aligned global pathways for buildings’ in-use emissions.
  • 1.5°C-aligned global pathways for buildings’ embodied emissions.

• An explanatory document providing guidance on emissions accounting and reporting, as well as target setting and validation.

• An assessment document to determine conformance with criteria.

By setting emission reduction targets in line with the SBTi Buildings Criteria and defining appropriate decarbonization strategies, businesses in the sector can be at the forefront of the net-zero transformation, and help build a resilient and sustainable future.

Funding for this project has been provided by the Laudes Foundation.

Project participants

The SBTi is the project lead, manager and convening agent. Participating in this project was possible via the following groups:

• Technical partners. Composed of representatives from non-profit organizations and academia. These partners co-developed project deliverables, participated in decision-making discussions and are recognized as co-authors in the final deliverables.
  • In collaboration with the CRREM, the SBTi developed 1.5°C in-use emissions decarbonization pathways, including regional in-use pathways for different building typologies.
  • In collaboration with Ramboll, the SBTi developed 1.5°C global embodied emissions decarbonization pathways, covering the emissions associated with materials and construction processes of new buildings.

These pathways are included in the Buildings Target-Setting Tool.

• Expert Advisory Group. Composed of technical experts from corporates, finance, non-profit and multilateral organizations. The Buildings EAG members provided technical advice over the duration of the project. This volunteer advisory role informed the development of practical and ambitious resources. The SBTi Buildings EAG consisted of the following:
  • AECOM
  • Aldar Properties
  • APG
  • Arup
  • Better Buildings Partnership (BBP)
  • Bouygues
  • BRE
  • Buro Happold
  • CapitaLand Investment
  • CBRE
  • Climate Bonds Initiative
  • Council on Energy, Environment, and Water (CEEW)
  • Environmental Coalition on Standards (ECOS)
  • European Climate Foundation (ECF)
  • Finance Ideas
  • Global Real Estate Sustainability Benchmark (GRESB)
  • Green Building Design Group
  • Green Finance Institute
  • International Finance Corporation (IFC)
  • JLL
  • Mitsubishi Estate Co.
  • Multiplex
  • Partnership for Carbon Accounting Financials (PCAF)
  • Ramboll
  • Simon Property Group
  • Skanska
  • Swire Properties
  • The European Network of Construction Companies for Research and Development (ENCORD)
  • University of Regensburg
  • University of Strathclyde
  • World Business Council for Sustainable Development (WBCSD)
  • World Green Building Council (WorldGBC)
  • World Wide Fund for Nature (WWF)

EAG members volunteered in a personal capacity to provide technical advice over the duration of the project. While their expertise helped guide the development process, final content decisions rested solely with the SBTi. As a result, the final output does not necessarily represent or imply endorsement by individual EAG members or their employers.

• General stakeholder consultation. Both industry and non-industry representatives provided feedback on each project component through the public consultation and pilot phase.

Development process

The SBTi Buildings Project started in October 2021. The researching and drafting phases were completed between the end of 2021 and mid-2023.

From May to July 2023, a two month-public consultation was held for experts in the sector to provide feedback on the resources developed as part of the project, and inform the development of robust, clear and practical resources for companies to set 1.5°C-aligned science-based targets. Read the public consultation feedback summary. Acknowledging the comments received, we moved forward with the revision of the criteria, guidance and tool to give way to a pilot testing process.

From November 2023 to March 2024, a pilot phase was carried out for companies and financial institutions in the buildings value chain to use their datasets to help identify any possible amendments that need to be made to inform the applicability of the criteria, guidance and target-setting tool across regions and businesses. Read the pilot testing feedback report.

Following the pilot phase, an extensive review of the feedback received was conducted, and the updated deliverables were sent to the SBTi independent Technical Council. Following their agreement to publish, the final resources were issued in August 2024.

Resources

Setting a science-based target:

• SBTi Buildings Criteria
• SBTi Buildings Explanatory Document
• SBTi Buildings Target-Setting Tool
• SBTi Buildings Sector Criteria in Brief
• Watch the deep-dive webinar and download the slides

• Buildings Criteria Assessment Indicators
• Buildings Annex

Background resources:

• 1.5°C Pathways for the Global Buildings Sector’s Embodied Emissions: Development Description
• 1.5°C Pathways for Real Estate Decarbonization: A CRREM and SBTi Collaboration and Pathway Application
• Basis for Conclusions of SBTi Buildings Criteria
• SBTi Buildings Project Pilot Testing Feedback Report
• Terms of Reference of the SBTi Buildings Project Pilot Testing
• Watch the pilot testing kick of webinar and download the slides
• Summary of the SBTi Buildings Guidance public consultation feedback
• The Expert Advisory Group Terms of Reference
• Watch the public consultation kick off webinar
• Download the public consultation slides

Contact

Join the buildings project mailing list to receive our newsletters and stay up-to-date on this project.

For general questions or clarifications on the Buildings Project’s resources, email [email protected]. For company-specific technical questions, we kindly invite companies to submit targets for validation in order to receive a tailored and detailed response.

Provide feedback on the SBTi Buildings Criteria V1.0 and supplementary resources using this form.