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Data year: 2023· Sources: CDP, IEA, EPA
11%
of global emissions
6.1
Gt CO2e / year
55
tCO2e / $M revenue
65%
Scope 3 share
Average emissions intensity for construction & real estate companies (2023 data)
| Company Size | tCO2e / employee | tCO2e / $M revenue |
|---|---|---|
| Small builder / developer | 15 | 65 |
| Mid-size contractor | 25 | 55 |
| Major construction firm | 40 | 45 |
Small builder / developer
15
tCO2e / employee
65
tCO2e / $M rev
Mid-size contractor
25
tCO2e / employee
55
tCO2e / $M rev
Major construction firm
40
tCO2e / employee
45
tCO2e / $M rev
Key decarbonization actions for the construction & real estate sector
Use low-carbon concrete and green steel
20-40% reduction in embodied carbon
Design for energy efficiency (Passivhaus, LEED Platinum)
40-60% reduction in operational emissions
Electrify construction equipment
15-25% reduction in Scope 1
Mass timber construction for mid-rise buildings
30-50% reduction vs. concrete/steel
Whole-life carbon assessment in design phase
10-20% through optimized material selection
Most construction companies do not yet measure or report embodied carbon in their projects, which is typically the largest source.
Construction and the built environment account for about 37% of global CO2 emissions when including building operations. Construction activities and embodied carbon in materials account for about 11%.
Embodied carbon is the CO2 emitted during the manufacturing, transportation, and installation of building materials. Concrete and steel are the largest contributors, accounting for 14% of global CO2 emissions combined.
The biggest opportunities are using low-carbon concrete and steel, designing energy-efficient buildings, using mass timber where appropriate, and electrifying construction equipment.
A typical new commercial building has an embodied carbon footprint of 500-800 kg CO2e per square meter, depending on materials and construction methods.
Data represents global averages for 2023. Actual emissions vary by company, region, and methodology.