Embodied carbon in focus: Navigating investor and industry expectations

At Sodali & Co, we understand the growing importance of embodied carbon in the real estate sector's sustainability efforts. Nicole Nishizawa and Michael Gardner-Brown discuss how investor and industry expectations around embodied carbon are rising, driven by the demand for more comprehensive greenhouse gas emissions accounting and target setting. In August, SBTi released net zero pathways specific to the buildings sector, including embodied carbon.

GRESB's 2025 Assessment will include updated indicators for embodied carbon, covering management, performance, and development components. Additionally, regulations like California's CALGreen building code are beginning to mandate embodied carbon accounting and considerations in new construction projects. In the real estate sustainability landscape, these shifts reflect a trend towards emissions accounting and net-zero targets encompassing Scope 3 emissions, including embodied carbon.

It is essential to take early action on embodied carbon due to the "time value of carbon," where near-term reductions can significantly slow global warming. By adopting low-carbon materials and construction practices and measuring the embodied carbon of development projects, real estate developers and owners can enhance the sustainability and marketability of their projects, making them more resilient to evolving investor expectations and market shifts.

Our team at Sodali & Co offers expert ESG consulting to help you navigate these complexities. We provide Scope 3 inventory, SBTi-aligned target-setting services, and advisory on embodied carbon strategy. Our tailored strategies can help your developments align with emissions reduction targets and be more resilient to investor expectations and market shifts, positioning you as a leader in sustainable real estate.

Read the full article here: Embodied carbon in focus: Navigating investor and industry expectations - GRESB