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Foreword Cristina Gamboa, CEO, World Green Building Council For this year’s World Green Building Week, we ask businesses and governments to #ActOnClimate. Project Team As health and wellbeing concerns dominate our headlines, we must acknowledge the role that buildings play in our sense of place and happiness. Victoria Kate Burrows But we must also consider the major contribution Director they make to global carbon emissions. Advancing Net Zero The catastrophe of the COVID-19 pandemic has devastated lives and economies around the world. World Green Building Council It also temporarily brought cleaner air in cities and caused global carbon emissions to decline. But this The industry is primed to deliver these solutions at Matthew Adams is just part of the story. The decline in emissions will scale, and business and governments have a unique be minuscule in comparison to the total reduction Project Manager opportunity to take bolder climate leadership. necessary to meet the Paris Agreement targets. Regulation is the key enabler in unlocking this Advancing Net Zero Our report outlines the latest in industry action potential. towards achieving our vision of a more sustainable World Green Building Council I am excited to see what the next year brings for built environment for everyone, everywhere. the Advancing Net Zero project, as it builds on its But to achieve our targets, we must strategy to both promote leadership through impact Matthew Black reporting from the Commitment and introducing #BuildBackBetter as an industry. Project Coordinator a new whole life carbon pathway; and supporting We must embrace visionary regulation to embed the sharing of educational resources on net zero Advancing Net Zero net zero strategies and concepts within a green buildings through an ANZ Academy. World Green Building Council economic recovery. This includes performance- based metrics, deep renovation improvements to As we advance towards COP26, taking place in existing buildings, clean energy infrastructure and November 2021, it has never been more important to nature-based solutions. embrace these opportunities. Global project funders Mina Hasman, Associate, Bianca Wong, Head of Sustainability, Skidmore, Owings & Merrill LLP Kingspan Group PLC WorldGBC’s Advancing Net Zero project is empowering We welcome the latest ANZ Status Report by the World the built environment sector and its constituents to Green Building Council. The programme continues to catalyse global leadership towards a regenerative build the momentum and gain the traction needed to future. The long-term vision and direction it defines progress our collective goal of a decarbonised built with its roadmap builds clarity in the steps the industry environment by 2050. We are proud to be a signatory must take, and gives confidence that the far-reaching of the Commitment; we aim to play a leading role in Net Zero goal is achievable. the Net Zero transition through our own ambitious internal efforts and by providing innovative solutions We aim to lead by example with the work we deliver, to market. We must work collectively to drive this work and to inspire others to accelerate change with the forward at pace. advocacy we intend to amplify at a global scale. Our collective action is what will make the difference – we, therefore, hope you will join us in this journey. 2 Advancing Net Zero Status Report 2020
Contents About Foreword 3 WorldGBC Contents 4 The World Green Building Council (WorldGBC) is a global network leading the transformation of the built environment to make it Leading GBC action 6-11 healthier and sustainable. World map 12 Collectively, with our Green Building Councils (GBCs) in around 70 countries, we drive action to deliver on the ambition of the Paris 1. Responsible investment 30-33 Agreement and UN Global Goals for Sustainable Development. ZERO & List of Commitment signatories 32-33 Through a systems change approach, working across sectors, we are aiming to transform the building and construction industry towards a net zero carbon and sustainable built environment. 2. Data and digitisation 34-41 We are committed to green buildings for everyone, everywhere to build a better future. Feature: Leadership action 38-41 Contact Information Web www.worldgbc.org 3. Empowering the design community 42-45 Twitter @worldgbc Email office@worldgbc.org We invite you to join us 46 London, UK Office Toronto, Canada Office Suite 101, 66-67 Newman St 401 Richmond St West, Suite 236 Fitzrovia Toronto, Ontario London, UK Canada W1T 3EQ M5V 3A8 4
Leading GBC action Breakdown of emissions The energy required to heat, cool and power the world’s buildings – residential and non- residential – is 28%. This includes both direct and in-direct emissions, meaning that strategies towards achieving net zero operational carbon must address both on-site fuel combustion such as gas boilers and diesel generators, and the emissions from purchased electricity. Both of these factors can be reduced more effectively if consumption is also reduced through energy efficiency measures. The building and construction sector remains a critical element in the race The remaining 11% of emissions associated with the sector come from the materials and to keep carbon emissions below dangerous levels for our planet. construction processes. The most carbon intensive materials are concrete, steel and aluminium, but they are not just used for buildings. These materials sectors on their own are Buildings consume 36% of energy produced, and are responsible for 39% responsible for a combined total of 22.7% of emissions. of global carbon emissions, making it the largest contributing sector to If the building and construction sector were to drastically shift demand towards low carbon climate change. options for these materials, this would require a transformation in the manufacturing processes of the supply chain. This would affect the total emissions for those materials streams and This must stop. have an enormous impact on emissions mostly attributed to other sectors through these three materials alone. WorldGBC’s global Advancing Net Zero Commitments are being made towards net The total potential impact, therefore, of the buildings and construction sector, is far greater project works with GBCs from across the zero portfolios, with actions being taken and than the 39% it is directly responsible for. world to advance net zero carbon buildings progress tracked. through six impact pathways: collaborate, advocate, rate, communicate, educate, Using a whole life approach, the project innovate, and invest. WorldGBC represents is empowering GBCs to identify the the network to accelerate climate action as workstreams and initiatives that would part of its new 2020-2022 strategy. be most effective in their markets to Residential (direct) address both operational and embodied 6% Through the inspiring actions of Green carbon emissions. This ensures a flexible Building Councils, businesses, governments approach that can be tailored to solutions Residential (indirect) 11% and non-profit organisations from around across different climates, cultures, and 7% the world, the sector is demonstrating that technical feasibility. This in turn increases Other Building 3% Commercial (direct) it can be a major solution to the problem. understanding and momentum towards net Transport operations The technical solutions exist and are being zero buildings that are better for the planet, 23% 28% applied to projects around the world. for people, and for resilient economies. 8% Commercial (indirect) Construction Other industry 11% industry Concrete, Industry 31% Steel & Aluminum (incl. building finishes, glass, 20.3% 22.7% equipment, plastics, rubber etc) Concrete 11.1% Steel 10.1% 1.5% Aluminum click to play Data from the Global Status Report 2019 (Global Alliance of Buildings and Construction and International Energy Agency) and Architecture 2030 6 Advancing Net Zero Status Report 2020
Definitions This reduced demand can then be met by a combination of measures: Nearly zero energy the annual energy demand is partially met through on-site renewable energy sources, but may still require connection to a fossil-fuel fed grid The sustainable building and construction industry has seen a remarkable shift towards net zero concepts, but the terminology Net zero energy the entire annual energy demand is met through on-site renewable can vary. Depending on the context, market conditions and energy sources, such as solar panels awareness, and availability of solutions, the appropriate target for a project might change. Energy positive the amount of energy produced on-site exceeds the annual demand, The general trend is a move towards performance- and could be exported to the grid or surrounding buildings based metrics and ensuring that building projects are accountable for the resources they use – materials, energy, water and more. Net zero carbon the annual energy demand is met through a combination of on-site The distinction between these terms often lie in the renewable energy and/or off-site renewable energy; where there are combination of measures being adopted. remaining emissions, these may be met through the use of offsets, depending on local guidance Energy efficiency remains an important concept across the industry as it ensures that energy is not wasted and is used efficiently to maintain In addition to addressing operational carbon, WorldGBC advocates for the effective reduction of embodied comfort levels. This is particularly relevant carbon from materials and construction throughout a building’s lifecycle through a whole lifecycle in summer or winter when there is a sharp approach. See more information on page 16. contrast with temperatures outside, or in high-energy intensive buildings. The baseline for terminology will ZERO ENERGY be determined by local code or regulation requirements. Depending on the stringency ZERO CARBON of these codes, there are likely to be passive (i.e. building layout, building HIGH PERFORMANCE Reduced demand fabric) and active (i.e. heating and cooling systems, lighting etc.) NET ZERO ENERGY measures that can be implemented to bring down the EMBODIED ENERGY predicted energy consumption. ENERGY POSITIVE ZERO NET ENERGY NET ZERO CARBON NEUTRAL RE RE itt wh RE RE e re y RE , ite RE su nc lin e s ite ite rm ts ite ite ea ie ed er f-s te se m ffic of si -s -s pe fse ff-s -s Ba e n- on on on NEARLY ZERO ENERGY e of o m eo y 0% % e o r 0% g m so m 00 er 10 So 10 So En >1 ULTRA LOW ENERGY Nearly Net Net Energy Energy zero zero zero efficient positive ZERO EMISSIONS energy energy carbon 8 Advancing Net Zero Status Report 2020
Whole Life Carbon Vision 2050 New buildings, infrastructure and renovations will have net zero embodied carbon, and all buildings, including existing buildings, must be net zero operational carbon Net Zero Operational Carbon Net Zero Embodied Carbon Definition Definition A net zero carbon building is highly energy A net zero embodied carbon building (new efficient with all remaining energy from onsite or renovated) or infrastructure asset is and/or offsite renewable sources highly resource efficient with upfront carbon minimised to the greatest extent possible and Guiding Principles 1. Measure and disclose carbon 2030 all remaining embodied carbon reduced or, as a last resort, offset in order to achieve net zero Carbon is the ultimate metric to track, Net Zero Carbon Buildings New buildings, infrastructure across the lifecycle and buildings must achieve an annual Commitment and renovations will have Guiding Principles operational net zero carbon emissions All buildings within direct at least 40% less embodied balance based on metered data control to operate at net carbon with significant upfront 1. Prevent Avoid embodied carbon from the outset 2. Reduce energy demand zero carbon by 2030 carbon reduction, and all new by considering alternative strategies to Prioritise energy efficiency to ensure buildings must be net zero deliver the desired function that buildings are performing as operational carbon efficiently as possible, and not wasting 2. Reduce and optimise energy Evaluate each design choice in terms of the upfront carbon reductions and as 3. Generate balance from renewables part of a whole lifecycle approach Supply remaining demand from renewable energy sources, preferably 3. Plan for the future on-site followed by off-site, or from Take steps to avoid future embodied offsets carbon during and at end of life 4. Improve verification and rigour 4. Offset Over time, progress to include As a last resort, offset residual embodied embodied carbon and other impact carbon emissions within the project or areas such as zero water and zero organisational boundary where possible waste or if necessary through verified offset schemes 10 Advancing Net Zero Status Report 2020
Around the world in ANZ Energy Positive Carbon Negative (E+C-) Zero Energy / Zero Carbon Whole life carbon ‘Paris Proof’ Super low energy Climate positive Net Zero Energy Carbon neutral Zero carbon NollCO2 Carbon positive LEED Zero Zero energy Zero energy carboNZero Net Zero Ready/ View all GBC snapshots Net Zero Carbon 12 Advancing Net Zero Status Report 2020
Net Zero Leaders that have signed the Commitment pledge to: Carbon Buildings COMMIT to an advanced trajectory for all new and existing buildings within direct control of the Commitment organisation to operate at net zero carbon by 2030; regulate and/or advocate for all buildings to operate at net zero by 2050 WorldGBC’s Net Zero Carbon Buildings As true industry leaders, signatories will utilise DISCLOSE and assess annual asset and portfolio energy Commitment (the Commitment) challenges their business activities and supply chains to demand and carbon emissions companies, cities, states and regions to reach net increase the support for and development of net zero operating emissions in their global portfolios zero carbon buildings, demonstrating the role they by 2030, and to advocate for all buildings to can play in reducing emissions from both their operate at net zero by 2050. carbon footprint and handprint. The Commitment is outcome focused and action Cities that have committed to enact regulation oriented, providing best practice guidance to develop globally ambitious yet locally relevant, for net zero buildings through the C40 Net Zero Carbon Buildings Declaration are already ACT to reduce emissions by developing and flexible and universally viable solutions to reduce reporting progress towards their goals . implementing a decarbonisation roadmap energy demand and reduce carbon emissions from 2020 is the first year signatories will report outlining key actions and milestones towards buildings at scale. progress, to demonstrate the impact already energy efficiency and renewable energy Each signatory completes an action plan through being taken to decarbonise their portfolios. A the joining process, thereby indicating their new collaboration with GRESB will ensure that intention to act on their commitment to: the Commitment is recognised in the GRESB Real • deliver genuine change; Estate Assessment, and ensure a streamlined reporting process. VERIFY enhanced energy performance, reduced carbon emissions and progress towards net zero • verify building performance using, for example, Whilst the Commitment is currently focused on carbon assets and portfolio green building certification schemes; Scope 1 and 2 energy related emissions, a whole life carbon pathway is under development to • and report on progress towards recognise how stakeholders across the value chain decarbonisation goals. can also drive down embodied carbon emissions. ADVOCATE for wider emissions reduction by acting as a New and existing signatories to the Net Zero Carbon Buildings Commitment catalyst through core organisation activities for celebrated at an awards ceremony in Brussels in December 2019. further action within respective supply chains For businesses, the Commitment is one of three pathways available to join EP100, an initiative by The Climate Group in partnership with Alliance to Save Energy. It brings together energy-smart companies committed to using energy more productively, to lower greenhouse gas emissions (GHGs) and accelerate a clean economy. Find out more 14 Advancing Net Zero Status Report 2020
Beyond the Embodied lifecycle carbon Carbon emissions associated Carbon emissions or emissions with materials and End of life savings incurred due to reuse or recycling of materials or construction processes throughout the whole carbon emissions avoided due to lifecycle of a building or Bringing Embodied exporting renewable energy infrastructure The carbon emitted during or using waste as a fuel demolition or deconstruction source for another and processing of materials process for reuse, recycling or final disposal Carbon Upfront ply al Dispo sup ateri Pro ces m sa Tr rt Raw an l po sin sp s or an g t Tr Decons tructio n Long considered the “blindspot” of This ambitious vision cannot be achieved Manufacturing the building and construction sector, by one part of the supply chain alone. It ment WorldGBC’s report Bringing Embodied relies on a combination of clear, demand- Replace en t Tr an hm Carbon Upfront (2019) demystified side signals, policy roadmaps, financial fur b i s ir sp or t Upfront pa Use nce Re Co embodied carbon, the significant impact on investment and supply chain solutions to Re carbon ns a Energy use en tru global carbon emissions, and the urgent and create industry confidence to facilitate the int The emissions caused in cti Ma the materials production time-critical need to address them. systemic change needed. on and construction phases of the lifecycle before the building or infrastructure The report set out a vision for a whole Endorsed by nearly 90 organisations begins to be used lifecycle approach to full decarbonisation including policymakers, financial institutions, Use stage of the buildings and construction sector think tanks, developers and manufacturers, embodied Operational carbon – addressing both operational carbon and it continues to be acclaimed by industry carbon emissions from materials and construction, groups and has stimulated action across Carbon emissions associated with materials and processes with an emphasis on upfront carbon. the sector to overcome the current market required for the upkeep of the built asset throughout its barriers. lifecycle Image from 'Bringing embodied It included the definition of embodied carbon upfront' report showing carbon as it occurs throughout the Find out more project lifecycle to demonstrate both the scope of the definition of net zero building’s lifecycle, best practice principles embodied carbon and need for whole to reduce emissions, and the actions life consideration and milestones that must be taken by all stakeholders across the value chain. The report was launched at an exclusive, invite-only event at the Empire State Building in New York City, during Climate Week NYC 2019. We were honoured to welcome as our keynote speaker Krista Mikkonen, Minister for the Environment and Climate Change, Finland. Ms Mikkonen appealed to the construction sector to accelerate its transition to low-carbon methods, and outlined Finland’s progressive approach to tackling embodied emissions from buildings and construction, which includes making the carbon footprint of buildings part of building regulations by 2025. Read the full keynote speech 16 Advancing Net Zero Status Report 2020
Promising and notable recent developments from industry in line with our vision include: In January 2020, Microsoft, one of the companies that endorsed the embodied carbon report, Announced in March 2020, the European Commission’s EU Green Deal has incorporated made the unprecedented announcement that they will not only be carbon negative by 2030, recommendations advocated by WorldGBC and essential to achieve a sustainable built but by 2050, they will remove from the environment all the carbon the company has emitted environment as part of the Circular Economy Action Plan, including setting requirements either directly or by electrical consumption since it was founded in 1975. This will include an for whole life carbon, and integrating these into green public procurement and sustainable aggressive programme to cut both direct emissions and across the entire supply and value finance policy. chain, and to make carbon reduction an explicit aspect of procurement processes. read more read more In May 2020, Cembureau, the European Cement Association, published its new Carbon London Energy Transformation Initiative, a network of over 1,000 built environment Neutrality Roadmap, setting out its ambition to reach net zero emissions by 2050. Through professionals in the UK, produced the Embodied Carbon Primer to support project teams reducing CO2 emissions at each stage of the value chain – clinker, cement, concrete, to design buildings that deliver ambitious embodied carbon reductions. It provides easy-to- construction and (re)carbonation – the roadmap sets the role of technology and making follow best practice and toolkits for reducing embodied carbon in buildings and can also aid political and technical recommendations to support this objective. planners to be aware of how planning recommendations on materials, massing and treatment read more of sites may affect embodied carbon. read more To overcome data accessibility challenges, Bionova have launched in May 2020 One Click LCA Planetary, in partnership with several organisations including 11 GBCs. The free embodied The Planning Institute of Australia declared a climate emergency in February 2020. carbon cloud software will allow comparison of different material options for design Referencing the report in their statement, it has adopted a target that “By 2050, new buildings, using local Environmental Product Declarations (EPDs), and allow requests for EPDs from infrastructure and renovations will have net zero embodied carbon, and all buildings, including manufacturers with a cost-efficient option to calculate them. All calculation data gathered existing buildings, must be net zero operational carbon”. will support the creation of local embodied carbon baselines and benchmarks for different building typologies. read more read more These initiatives send strong signals for the direction of travel in taking responsibility and accountability for the emissions that our sector is responsible for. The ripple effect will be felt as more organisations continue this Collaboration trend, enabling collaboration and innovation, and bringing Establishing roadmaps to form a common vision solutions to market faster. This, in essence, is the Theory of Change as set out in our report, already in action. Communication Raising awareness and building capacity Education Addressing foundational gaps in skills, data and benchmarks Innovation Creating new business models, new Accelerate technologies and circular patterns Harness the power of voluntary, financial, policy and regulatory Regulation market forces Mandating reductions in embodied carbon that are aligned with 1.5ºC compliant decarbonisation pathways 18 Advancing Net Zero Status Report 2020
Advancing Net Zero in numbers May 2020 27 17 418 95 Green Building Green Building Councils Councils participating in Net Zero Carbon with adopted Buildings certified Buildings the Advancing or adapted Net Zero project, net zero through Commitment certification GBC schemes signatories (full actively working schemes and to advance net list on page 33) programmes zero carbon launched buildings 20
Regional ANZ Americas: Cities Climate Action projects A ground-breaking city engagement initiative, supported by P4G and the Building Efficiency Accelerator, is building a bridge towards net zero carbon in Latin America and ensuring millions of people benefit from better buildings. It involves 23 cities and states from 10 different countries and brings together GBCs, industry and NGOs to accelerate technical solutions to net zero. WorldGBC is the world’s largest green building network for local, regional and global impact. We build on the strength of our network of GBCs and their members, and coordinate collaboration for enhanced impact through regional and global projects towards common goals and outputs that are transferable across geographical boundaries. Together, we go further, faster, towards a decarbonised built environment. Europe: BUILD UPON2 MENA & Africa: ANZ workshops Phase two of our BUILD UPON project, funded by the EU’s Horizon 2020 programme, will play a key role in Continuing a series of events that started in 2018 for promoting the urgency and achievability tackling one of Europe’s biggest climate challenges: the of net zero carbon buildings, two dedicated events supported by Majid Al Futtaim were held in renovation of its existing building stock. The project will Kenya and Egypt to bring together local stakeholders to share experiences and solutions for the develop a universal framework to effectively measure regions, support economic growth and stimulate the supply of green buildings. the environmental, social and economic impact of deep building renovation in cities. Find out more Asia Pacific: ANZ in APN In order to identify the best approaches to achieving net zero buildings in the Asia Pacific region, a series of workshops supported by We Mean Business and the Ramboll Foundation have been held in China, India and Hong Kong, along with a webinar series across the region. This included exploring responses to the climatic and geographical challenges of the region to embrace low operational and embodied carbon strategies in buildings. View the full list of our regional networks 22 Advancing Net Zero Status Report 2020
Case Studies NUS SDE4, a five-storey, net zero-energy building (NZEB) in the Singapore, certified The Sohrabji Godrej Green Business Centre in to DGNB Climate Positive from the German Hyderabad, a retrofit project rated Net-Zero Energy Sustainable Building Council Platinum by the Indian Green Building Council “An integral aspect of net zero-energy “The centre exemplifies consumption is that conventional sustainable performance through approaches to air conditioning have the thoughtful integration of to be challenged.” passive and active measures.” view online view online The Phenix, a net zero refurbishment project in Montreal, Canada, has achieved Zero Carbon Standard – Performance from Canada Green Building Council, and also exhibits extensive Discovery Elementary School, in Arlington, features that enhance human health Virginia, US, is the first school to achieve the US Green Building Council’s LEED Zero Energy certification, and is now net positive. “For Lemay, the decision to retrofit the Phenix instead of designing “The kids can see the building energy and constructing a new building dashboard and ask questions like, was significant as it resulted in a ‘Why did we generate more energy much lower carbon footprint than today than we did yesterday?’” that of a new build – a reduction of more than 86%.” view online view online Visit the WorldGBC Case Study Library for more examples of verified net zero buildings. 24 Advancing Net Zero Status Report 2020
GBC action timeline July 2019 September 2019 October 2019 November 2019 December 2019 January 2020 March 2020 April 2020 May 2020 UKGBC publish ‘Guide NZGBC launch ‘A Zero Philippines GBC USGBC announce European Leaders’ Irish GBC include Canada GBC launch Norwegian GBC GBC Australia release to Scope 3 Reporting Carbon Road Map for launch BERDE Net LEED Positive Summit Zero Carbon in Home Zero Carbon Building release ‘Think twice strategy for Green Star in Commercial Real Aotearoa’s Buildings’ Zero Performance Index Standard 2.0 before demolishing’ Homes for healthy, Estate’ and carboNZero A vision statement and City and business booklet resilient, and net zero certification development roadmap leaders came energy homes that will lay the together to workshop Addressing common Sets out the steps foundation for a future strategies to bring net myths that contribute needed to get all of LEED, transitioning zero solutions to scale to the demolition of buildings zero carbon from strategies in cities. buildings by thinking Green Building Council DGNB release Climate by 2050 and all new that reduce harm to about old buildings in of Australia, along Positive: Now! Report buildings zero carbon encouraging buildings new ways. by 2030, from building with the Property to become a vehicle Council of Australia, Showing how every Find out more at owners, tenants, for environmental building can make a byggalliansen.no developers, and launch ‘Every Building restoration and repair. Counts – A practical contribution to climate government. protection plan for emissions Find out more at usgbc.org Find out more at nzgbc.org reduction in the built and providing environment’ assistance in the form of pragmatic Outlining policy and practical recommendations implementation. Canada GBC release for all levels of ‘Accelerating to Find out more at dgnb.de government in Zero: Upskilling for UKGBC launch Climate Australia to drive GBC Indonesia soft Engineers, Architects, Commitment Platform emission reductions, launch of Greenship and Renewable Energy including targets Net Zero Specialists’ report An online tool and building codes – designed to profile the including mandatory Identifies headline commitments disclosure and a opportunities for and carbon targets trajectory of increases upskilling around the of built environment to minimum standards competencies needed organisations, and a of energy efficiency, to enable the building Climate Leadership broader adoption of sector to deliver net Model to assist building certification, zero buildings. companies in setting financial and climate commitments Find out more at cagbc.org planning incentives, to ensure they are demonstration consistent with best projects, and practice. education and training. Find out more at ukgbc.org Find out more at everybuildingcounts.com.au 26 Advancing Net Zero Status Report 2020
World Map Business & Organisations Cities States & Regions ANZ GBCs Member GBCs 28 Advancing Net Zero Status Report 2020
1 Responsible investment Recognising the impact of climate Net zero buildings mitigate risk and increasing in uptake, to help address the change on your organisation ensure assets are resilient against future significant challenge of incentivising Early climate disclosure focused on the innovation opportunities from adoption of new technologies and new business operating models. climate scenarios. upgrade of private ownership properties, and question “What is the impact of your For those who wish to prosper in a low carbon world provide financial and non-financial benefits. organisation on climate change?” The it is imperative that both risks and opportunities are In addition to having lower operational and introduction of Task Force on Climate- managed in a balanced way. maintenance costs and increased asset The EU taxonomy is a tool to help investors related Financial Disclosures (TCFD) What is clear from experiences within the real value and desirability, net zero buildings understand whether an economic activity is reporting requirements flips this question estate sector to date is that the relationship provide an opportunity to prepare for future environmentally sustainable and to navigate between investor/ landlord and tenant and the wider on its head, to ask “What will be the regulations as governments respond to their the transition to a low-carbon economy. community stakeholders needs to change, into a impact of climate change on more collaborative one in nature rather than one of obligations under the Paris Agreement. Setting a common language between your organisation?” simply contractual duties. Something that is crucial By planning for performance monitoring, investors, issuers, project promoters and to managing assets, for the benefit of people and the This switch of emphasis requires investors to disclosure and upgrading, investors and policy makers, it helps investors assess planet, is the acquisition of timely and good quality consider both near and long term impacts and utility data, as without it is difficult to identify and owners are increasingly looking to ‘Paris whether investments are meeting robust requires sophisticated modelling techniques plan improvements for carbon reduction. For many proof’ their assets for increased demand environmental standards and are consistent that collates both physical and transition risk investors who report to GRESB each year, obtaining appraisals. To fully appreciate the risks and in environmentally conscious buildings with high-level policy commitments good data for Scope 1, 2 and 3 emissions continues the opportunities that can come from full TCFD to be challenge. Technological and relationship operations and healthy, sustainable spaces such as the Paris Agreement on Climate assessment and disclosure requires expertise solutions need to be identified to rectify this basic that meet environmental, social and Change. The recent Taxonomy report from an interdisciplinary team that has not hitherto barrier to enable behaviour change. collaborated before. Now the knowledge and skills of governance compliance. specifically references our vision for total scientists and engineers need to work alongside risk A second challenge for both real estate and decarbonisation of the sector. Moreover, and financial modelling experts. infrastructure sector investors is how to address Data from the Climate Bonds Initiative WorldGBC called for the taxonomy to adopt embodied carbon over the life of an asset. Many states that global green bond and green Investors who are PRI signatories and who already investors are becoming more comfortable with the a lifecycle approach to give a clear signal respond to the annual GRESB survey will be requirements for measuring operational carbon loan issuance reached an adjusted US to the financial sector that Paris-proof aware that there is an increasing expectation not but are far less clear on how to define and manage $257.7 billion in 2019, marking a new means net zero whole life carbon. The only account for climate change as an optional embodied carbon. Although assessments such as global record. This is a 51% increase on the sustainability metric but fully align with the BREEAM and LEED have promoted whole life carbon report proposes timeline for updating the principles of TCFD; which means embedding appraisals for many years, and there are well proven previous year and was primarily driven by criteria to include embodied carbon that is climate risks into all governance aspects of the standards to use to make the assessments, such the wider European market. aligned to our report, Bringing Embodied organisation. This is no longer an optional approach appraisals are not routinely undertaken. and is not a small undertaking. It requires traditional The United Nations-convened Net Zero Carbon Upfront. organisational structures and hierarchies to be re- In the coming decade embodied carbon will become imagined to reflect the wide skill sets and knowledge the largest share of an asset’s overall carbon impact. Asset Owner Alliance is an international And institutional investors are already needed to understand future impacts, and then Is it therefore essential to recognise that embodied group of institutional investors delivering supporting low embodied carbon solutions, implement new requirements from investments and carbon debt accrues immediately and will determine on a bold commitment to transition such as the largest investment in the organisational behavioural change. the timescale and scale of building retrofits and choices of materials used. their investment portfolios to net zero construction of wooden buildings in Finland Although the TCFD guidance rightly focuses on greenhouse gas emissions by 2050, by Keva, a Commitment signatory. identifying and managing risk, in order to galvanise In some cases institutionally accepted designs and representing more than US $4 trillion in the need for action it is important to also recognise engineering solutions will need to be challenged. the substantial opportunities to be identified by the assets under management. These initiatives are leveraging the key Author: Matthew Brundle, Director, EVORA Global same governance review processes by identifying role the investor community can play in Green mortgages supporting the mass catalysing decarbonisation of the global market financing of energy efficient economy and investing in climate resilience. renovation of existing homes are also 30 Advancing Net Zero Status Report 2020
List of signatories to WorldGBC’s Net Zero Carbon Buildings Commitment May 2020 Businesses & Organisations Cities Adventist Education Southern Joseph Homes - London, UK Copenhagen, Denmark Brazilian Union - Curitiba, Brazil Cape Town, Durban, Johannesburg & JLL UK - London, UK AESG - Dubai, UAE Tshwane, South Africa Keva - Helsinki, Finland AMP Capital Wholesale Office Fund - Heidelberg, Germany Kilroy Realty Corporation - Los Sydney, Australia Helsinki, Finland Angeles, California Armstrong Fluid Technology - London, UK Kingspan - Dublin, Ireland Toronto, Canada Lemay - Montreal, Canada Los Angeles, New York City, Arthaland - Manila, Philippines Newburyport, Portland, San Francisco, Lendlease Australian Prime Property Assura - Warrington, UK San Jose, Santa Monica, Seattle & Fund (APPF) Commercial - Sydney, Atelier Ten - Sydney, Australia Washington DC, United States Australia Avison Young UK - Birmingham, UK Medellín, Colombia Lendlease Australian Prime Property Bennetts Associates - London, UK Fund (APPF) Industrial - Sydney, Melbourne & Sydney, Australia Australia Montreal, Toronto & Vancouver, Berkeley Group - London, UK Lendlease International Towers Canada Bionova - Helsinki, Finland Sydney Trust - Sydney, Australia Oslo, Norway Brandix - Colombo, Sri Lanka Lendlease One International Towers Paris, France Bruntwood - Manchester, UK Sydney Trust - Sydney, Australia Stockholm, Sweden BuroHappold Engineering - Bath, UK Local Government Super - Sydney, Tokyo, Japan Carbon Credentials - London, UK Australia Vallalodid, Spain Citycon - Espoo, Finland Majid Al Futtaim - Dubai, UAE Max Fordham - London, UK States & Regions Cbus Property - Melbourne, Australia Monash University - Melbourne, Baden-Württemberg, Germany Commonwealth Bank of Australia - Sydney, Australia Australia California, USA Cundall - Newcastle, UK Multiplex - London, UK Yucatan, Mexico Deerns - The Hague, Netherlands Natural Resource Defense Council - Navarra & Catalonia, Spain New York, New York Dexus - Sydney, Australia Scotland, United Kingdom Newsec Finland - Helsinki, Finland EcoReal - Helsinki, Finland Nightingale Housing - Melbourne, EVORA Global - London, UK Each organisation has developed an Australia action plan detailing their strategy ExCool - Bromsgrove, UK Petinelli - Curitiba, Brazil to achieving their targets. View the FORE Partnership - London, UK Salesforce - San Francisco, California Commmitment signatory profiles Foster + Partners - London, UK Shaw Contract - Dalton, Georgia Frasers Property Australia - Sydney, Signify - Amsterdam, Netherlands Australia Stockland - Sydney, Australia Goldman Sachs - New York, New York Surbana Jurong - Singapore GPT Wholesale Office Fund - Sydney, Australia Sydney Opera House Trust - Sydney, Australia Grimshaw - London, UK Varma - Helsinki, Finland Grosvenor - London, UK Wereldhave - Amsterdam, Hudson Pacific Properties - Los Netherlands Angeles, California YLVA - Helsinki, Finland Integral Group - Oakland, California 32 Advancing Net Zero Status Report 2020
Data and 2 digitisation Data is pivotal to high performance net zero buildings and essential to unlock the of investment in intervention measures to improve performance. Optimising building performance opportunities to reduce energy consumption The increased accessibility and accuracy of Building back stronger – lighting the way sustainability program, and in 2020, just five years and carbon emissions. down the road, we are approaching our goal and will these tools is closing the “performance gap” through a post pandemic recovery be the first global lighting company to becoming Sophisticated building modelling software, – the gap between building performance 100% carbon neutral in all our operations worldwide The COVID-19 pandemic has upended economies toolkits and product declarations radically and theoretical design predictions. This is around the world, promoting governments to pass later this year. improve transparency and communicate the particularly essential for net zero buildings massive economic stimulus and recovery plans to As part of our sustainability program, we are impact of design decisions often with real- to ensure a net zero carbon balance. mitigate economic damage and speed recovery. monitoring the energy mix to look at energy Not surprisingly, building renovation plays a vital efficiency measures, renewable energy and time feedback. This can facilitate a more role in these efforts. Advances in monitoring technology, transportation. Our Net Zero Carbon Buildings streamlined approach to building design Commitment is an integral part of our global building-integrated modelling, solutions Five years after the Paris Climate Agreement, it and optimise system and material selection. is indeed high time to fix the ambition level and it commitment. We have established a baseline for modularisation, and off-site construction our building stock based on the data we monitor Forecasting future climate scenarios could well be that this pandemic triggers a much are also reducing waste through more needed sense of urgency to speed up action to for energy consumption and carbon footprint per ensures that buildings are not just designed building and we track progress on energy saving and accurate specifications and controlled reach carbon neutrality by 2050 at the very latest. for today’s world, and scanning technology And we know how to get there. By increasing annual emissions reduction. As such, we have developed a environments, and maximising multi-year plan to equip all over 300+ office building enables quicker modelling of existing energy efficiency improvement rates to 3%, doubling opportunities for circular economy. infrastructure (mostly building) renovation rates to stock with state-of-the-art LED installations. A large buildings for renovation. number has already been converted to LED, and 3%, and combining that with a 3% increase in the use These concepts ensure that buildings of renewables per year we would be well on the way. out of the remaining 40 buildings, 15 are in varying And when a building is occupied, stages of progress since the project kick off in 2019. are responsive to changing conditions - smart meters and building management Key to achieving these climate goals are meaningful adjusting energy generation, export and programs that turn talk into action. As the world As a result, in 2019 we managed to save 20% systems can help ensure it is performing in energy consumption in our office buildings, procurement patterns to ensure that net leader in lighting, we strongly back first class optimally, with sensors for real-time initiatives of our partners, such as the Climate showrooms and warehouses and increased our zero performance is sustained over the renewable electricity from 89% to 94% and achieved tracking and automation of control Group’s EV100 and RE100 initiative, to which we building’s lifetime. have been a long-standing member, or the World 54% reduction of carbon footprint and we switched systems. The data allows prioritisation our company fleet to 100% electric or hybrid vehicles. Green Building Council’s Net Zero Carbon Building Commitment that we signed as one of the first three The COVID-19 pandemic has been a stark reminder signatories in 2018. In all these efforts, lighting how vulnerable we are as a global community. But a plays an important part as it offers instant double- crisis is also an opportunity. We now have a chance digit savings of up to 80% and it is one of the least to build back better and finally tackle those imminent invasive energy efficiency measures. actions that are needed for a more resilient planet. Equally important to global partnerships, is leading Author: Barbara Kreissler, Director of Professional by example. It makes me proud to be part of a Lighting, Global Public and Government Affairs, company that walks the talk and turns commitments Signify into real projects. In 2015, we launched our 34
Did you ever for increased collaboration and communication, project visualisation, enhanced specification, cost- estimation, simulation, improved clash-detection and think you a host of other benefits. Within the built environment, BIM models can graduate to become working real-time models of the could wear a building: Digital Twins (DTs). An accurate BIM model keeps a 3D and real-time representation of all the materials and components of the structure, giving building? Facility Managers continuous foresight of when equipment will need replacing or servicing, thus creating greater efficiency in building management. DTs are enhanced with various types of sensors Data and digitisation ultimately prompt or connected to the building management system circularity in the construction sector. (BMS) creating live working models of actual Optimising buildings. Sensors most commonly measure Kingspan is committed to promoting an envelope- temperature, energy usage, movement, and light first approach and supporting the industry’s levels. DTs offer Facility Managers the opportunity to development of innovative solutions towards measure and tailor energy-in-use, noting and fixing decarbonisation. This will require systemic change any anomalies such as patches of high CO2 or low in the way products are manufactured, specified, and materials temperatures, increasing efficiency and reducing transported and the way buildings are designed, built, carbon emissions. maintained/operated, and ultimately deconstructed. In turn, it will provide a platform for increased Data and DTs also contribute to the circular economy circularity in the built environment, embedding value because for the first time, those dismantling, in materials, facilitating refurbishment, reuse, and refurbishing or improving properties will know exactly specification, better recycling. what has been installed and how, thereby maximising material recovery. They will make refurbishment a In conjunction with providing high performance predictable operation rather than an expensive game building envelopes that save more energy of roulette and turn demolition sites into places of and therefore carbon, Kingspan announced resource rather than waste. circularity, and Planet Passionate , its major 10-year global sustainability programme, at the end of 2019. The This process provides the opportunity for every strategy – comprising of 12 ambitious targets, material and component within a building to maintain focusing on four key areas: Energy, Carbon, value, enabling the circular use of materials. A Circularity and Water – will make significant ‘Reuse, Recreate’ design challenge, created and streamlining advances in the sustainability of Kingspan business sponsored by the Kingspan Water & Energy division, operations and products. The strategy also falls in offered students of NCAD (National College of Art line with the UN Sustainable Development Goals and and Design) in Dublin, the opportunity to design an Science Based Targets. object using pellets from reclaimed Kingspan Oil Tanks, showcasing the opportunity of circularity in construction Providing reliable, accurate data, direct from the plastic use. The winning student - Emily Jennings - manufacturer to feed construction projects and utilised the reclaimed plastic pellets to craft dramatic interacting at much earlier stages in the build statement jewellery, a far cry from the oil tank the process – when project outcomes are set – assists material was 6-months earlier. in optimising material specification. This can also help to identify future scenarios when a building is Data and digitisation are true enablers of repurposed or decommissioned, thus coinciding sustainability in the built environment. The with generating a more sustainable, circular built availability of accurate, reliable data on building environment. Kingspan aspires to lead in capturing, components and performance strengthens organising and managing building data - ultimately sustainable building design, maintenance and creating accurate and relevant data which matches deconstruction, facilitating the transition to a circular clients’ real-world assets. economy in the built environment. Such an economy will notably reduce the pollution in our environment Building information models or modelling (BIM) has caused by the extraction of materials, demonstrating been around since the 1980s but with ever-increasing there is far more value and opportunity in buildings advancements in computational power and cloud than we could have imagined. storage, it is becoming the backbone for driving productivity, efficiency and traceability. This allows Photography Credit: Eric Cheung the building design and construction sectors to Jewellery designed & created by Emily Jennings align their processes, leveraging these technological advancements in Computer Aided Design (CAD) Author: Bianca Wong, Global Head of Sustainability, Kingspan 36 Advancing Net Zero Status Report 2020
Anna Braune, Director Research and Development, DGNB Feature Our Climate Positive: Now! – DGNB’s numerous projects. In the Framework, the DGNB has compiled its definition of carbon neutrality and approach on advancing net-zero the corresponding explanations of procedures and Climate action has been a central concern of the strategies. The aim of the document is to create DGNB German Sustainable Building Council since clarity on the market and to educate all players its foundation. With the awareness that the existing involved in the planning, construction, operation and member laws will not sufficiently resolve the problem, the management of real estate with regard to effective only way currently left is voluntary proactivity. The optimisation approaches for reducing greenhouse DGNB has been working in this area since 2007, by gas emissions. advocating the planning, construction and operation Specifically, the framework describes of buildings which will make an active contribution comprehensive, practically applicable rules for to climate protection. GBCs take accounting for the CO2 emissions of buildings In order to bring about the necessary, systematic and sites. Based on the definitions formulated transformation of our decisions and actions on a there for carbon neutrality in the operation and broad scale, the DGNB has initiated a large number construction of buildings, the Framework provides of activities relating to consistent climate action. the basis for developing building-specific climate They all show: the time for waiting is long gone! We action strategies. The basis for this is provided action can and must finally start discussing climate action by individual Climate Action Plans, as presented not just in theory, but take it seriously and tackle it in the Framework. In just a few steps, it is shown pragmatically. how each building comes to its concrete action plan, which is the most economical way to achieve One example is the publication, Climate Positive: carbon neutrality by the year 2050 at the latest. The Now! , which is intended to encourage and Framework also provides support for the concrete educate. Far too much is taken out of context and implementation and evaluation of the measures discussed in abstract terms at events and in the derived from the strategy and defines the framework media today. The DGNB wants to counter this with for corresponding CO2 reporting. knowledge and clearly structured recommendations for action. One tool that helps to make the path to carbon neutrality feasible is the DGNB Certification System The content of the brochure is based on DGNB’s for Buildings in Use. Whether for individual buildings “Framework for carbon neutral buildings and sites”, or entire portfolios and as a transformation and which aims to make the decarbonisation of management tool, it provides practical assistance existing buildings feasible by 2050. One important in developing a sustainable and future-proofed real message in it is that you first need to know estate strategy. This enables more climate action where you currently stand before you can make and less risk of bad investments. Buildings that are a meaningful decision on which operational or already operating carbon-neutrally receive the DGNB constructional measures are the right ones to Climate Positive award in addition to the DGNB guide your building towards carbon neutrality. certificate. This recognises the positive contribution that these buildings already make to achieving The current version of the framework from March climate action goals. 2020 is based on an initial version published in 2018, the methodology of which has been evaluated in More information 38 Advancing Net Zero Status Report 2020
Advancing net zero in Canada means Case for Building to Zero proves that zero carbon buildings are technically feasible, financially viable, accelerating the adoption of aggressive and represent the best opportunity for cost-effective carbon reduction strategies in new and emissions reductions today. But getting Canada’s existing buildings today. The Canada built environment to zero by 2050 requires concerted Green Building Council (CaGBC) has taken effort and the support of government and industry. a leadership role, having developed a Recently, CaGBC conducted a study to better Zero Carbon Building (ZCB) Program that understand the gaps in low-carbon knowledge and skills among Canada’s building professionals. provides standards, education, and research Entitled Accelerating to Zero: Upskilling for to support the country’s climate goals. Engineers, Architects and Renewable Energy Specialists , the study follows a similar report In 2017, CaGBC launched a made-in-Canada looking at the skills gaps for construction trades . solution with the Zero Carbon Building Standard Both studies demonstrate that the building industry Felipe Faria, CEO, which helps direct design, guide retrofits, and verify has work to do to ensure Canada can deliver zero Green Building Council Brazil that building operations are zero carbon. By the end carbon buildings at scale and they provide key of 2019, ten certifications were achieved, including considerations for governments and providers of Mohawk College’s The Joyce Centre for Partnership education and training. and Innovation – the first to achieve certification Big challenges require aggressive goals: More than 20 engineers spent four months visiting for both design and operations. Momentum is Investing in a low-carbon workforce will help meet and auditing those buildings, including over 111,000 in Brazil, Paraná State confirms its pieces of equipment. The energy efficiency strategies building in 2020, with several dual certifications and the rising demand for zero carbon buildings – but first step to transform 212 of its public will reduce energy use by 52% in lighting systems more exciting projects on the horizon. it could also pave the way for a green economic recovery as Canada reopens after the COVID-19 buildings into NZEBs and 33% in air conditioning. The majority of those In March 2020, the Standard was updated based on buildings are public schools, but the City of Balsa shutdown. Green building is already a significant discussions with industry stakeholders and learnings GBC Brazil currently has 52 buildings registered for its Nova included more: the City Hall and Chamber contributor to Canada’s economy. Over 460,000 from dozens of real-world projects, including schools, Net Zero Energy certification. Those projects vary in of Deputy buildings; a Health Unit; public parks Canadians currently work in green building. In 2018, multi-unit residential, commercial and industrial size and use, including low-rise commercial buildings, and public sport venues; the municipality landfill green building activity contributed approximately $48 buildings. ZCB Standard v2 was designed to accelerate residential projects (with off-site generation), homes, installation; and all public lighting systems (off- site billion towards Canada’s GDP – an increase of 50 per the adoption of zero carbon building practices by public and private schools, universities, cultural generation). cent in just four years. With financial investment, the providing the industry with a zero carbon approach that centres, distribution centres and industries. Despite green building industry could get Canadians back to works for almost any type of new or existing building. this diversity, these projects have things in common: Net Zero Energy Building City of São José dos work and help reignite the economy. transformation per City Pinhais, 37 public ZCB Standard v2 balances the rigour needed to • investments in energy simulations; (on-site generation): schools that uses eliminate carbon with the flexibility to get more CaGBC has called on the federal government to • e xperienced project teams to find the City of Maringá, 35 0,972,12 MW/h buildings to zero, faster. Updates focused on think green when it comes to recovery spending, and our zero carbon ambitions are front and center. financial feasibility for a NZEB; public schools that uses City of Fazenda Rio reducing and offsetting emissions for the building’s CaGBC outlined its recommendations in Ready, set, • high energy efficiency; 1,869,78 MW/h Grande, 33 public entire life-cycle, including embodied carbon and grow: How the green building industry can reignite • excellency in energy management City of Paranavaí, 28 schools that uses refrigerants, and better ensuring the prudent use Canada’s economy . Those recommendations during operations; public schools that uses 0,794,47 MW/h of Canada’s clean energy resources through more include betting big on zero carbon, training the • and on-site renewable energy generation 0,867,16 MW/h City of Balsa Nova, 29 stringent energy efficiency requirements. At the same time, the Standard provides more options for workforce, and removing barriers to fund low-carbon that covers the entire consumption for City of Cascavel, 41 buildings that uses retrofits now. We believe that the economic recovery a 12-month period. 0,284,08 MW/h different design strategies and recognizes more public schools that uses this health crisis has precipitated could be the options for carbon reductions. Considering its good atmosphere and expectations 1,503,46 MW/h Net Zero Energy Public tipping point we need to transition Canada towards regarding the Net Zero Energy discussion and GBC City of Foz do Iguaçu, 31 Lighting (off-site We believe there is no time to waste or reason to zero carbon – an idea whose time has truly come. Brazil’s credibility, the State Government of Paraná public schools that uses generation): wait on the road to zero. CaGBC’s report Making the signed an MOU to create a Net Zero Energy Public 2,403,83 MW/h City of Balsa Nova, 2,111 Building Program, which will become part of the lights and equipment that Government’s Strategic Plan. The MOU was signed uses 1,401,30 MW/h by GBC Brazil, the Secretary of Urban Development and Public Works, the public company responsible for Considering the high quality of the energy efficiency assisting and enforcing municipal projects financed projects and the financial arrangements and by the State (Paranacidade), and the Development conditions provided by the State, the payback for Bank of the State (Agência Fomento Paraná). each Municipality will be three years, with a positive cash flow since the contract’s first year. The MOU will grant financial resources to retrofit 212 existing public buildings into NZEBs, all to be We expect these buildings to start operating with GBC Zero Energy certified. As a counterpart, GBC net zero energy in 2021 and the GBC Zero Energy Brazil, supported by its member company Petinelli certification will be concluded in 2022. Engineering, donated the energy efficiency and renewable energy generation projects that will go More than 100,000 students will be educated in a net on bid by the end of 2020. Petinelli is leading the zero energy building. execution of net zero energy buildings in the country. Fin Macdonald, Manager, Zero Carbon Building Program 40
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