To achieve net zero carbon construction by 2050, companies must implement innovative strategies to cut emissions across the entire construction value chain.
Globally, construction is responsible for nearly 40% of greenhouse gas emissions, with significant contributions from building operations, material production, and transportation.
In New Zealand, the aim is to reduce greenhouse gas emissions to 50% below 2005 levels by 2030, as per its commitment to the Paris Agreement.
Australia remains a significant contributor to global carbon emissions per capita and is working towards a 43% reduction in emissions by 2030.
The path toward net zero requires the construction industry to embrace ambitious sustainability targets, shifting from simply reducing or offsetting emissions to a more transformative goal: achieving net zero embodied carbon, where materials actively contribute to lowering overall emissions rather than merely compensating for them.
In this article, you’ll uncover actionable tips and insights to help your business grow while achieving net zero in construction.
The challenge: Carbon emissions in Construction.
Decarbonising the construction sector requires tackling emissions throughout its entire lifecycle —design, procurement, construction, operation, maintenance, material repair, energy and water consumption, and demolition. While this might seem like a daunting task, it also presents opportunities to innovate, build resilience, and unlock new avenues for business growth.
Below, we explore real-world examples from Australia and New Zealand that demonstrate practical steps the construction industry is taking to reduce emissions and meet net zero goals.
These examples offer actionable insights for businesses looking to thrive while making a meaningful impact.
Low-carbon concrete by Holcim: Holcim Australia has developed ECOPact, a low-carbon concrete solution, which reduces embodied carbon by up to 60%. Used in major infrastructure projects like the West Gate Tunnel in Melbourne, this innovation highlights how material choices can significantly lower construction emissions.
Sustainable housing by Panuku Development Auckland: In New Zealand, Panuku Development Auckland’s housing projects incorporate passive design principles and energy-efficient systems, including solar panels and advanced insulation. These features help achieve near-zero operational emissions while maintaining affordability.
Construction with carbon-negative materials: In Australia, innovative solutions like Acla, a carbon-negative aggregate developed by Low Carbon Materials, are paving the way for greener construction. Acla actively lowers the carbon footprint of concrete, offering a transformative step toward net zero embodied carbon. These advancements demonstrate how integrating cutting-edge materials can significantly reduce the environmental impact of the construction industry, setting a new benchmark for sustainability in the built environment.
Strategies to integrate net zero with business growth.
Achieving net zero in construction is about embedding sustainability into every aspect of your business. Here’s how:
Adopt digital tools: Embracing automated emissions data capture, streamlined workflows for data approvals, and integrated systems can revolutionise sustainability efforts in construction. For instance, connecting emissions models with Building Information Modeling (BIM) and Business Intelligence (BI) tools enables seamless data flow and real-time insights. These integrations empower companies to track emissions more accurately, approve and validate data efficiently, and make informed, data-driven decisions that optimise resource use and reduce inefficiencies.
Partner across the value chain: Collaboration is fundamental. Engaging suppliers, architects, and contractors in shared sustainability goals ensures consistency and accountability.
Focus on product innovation: Integrating a handful of high-impact, low-carbon materials at the tender stage can elevate your profile as a carbon-conscious organisation and give you a competitive edge in winning business. For example, leveraging cutting-edge solutions like ultra-low-carbon aggregates or alternative binders in concrete can significantly reduce embodied carbon in projects. The collaboration with cement manufacturers to develop ultra-low-carbon concrete, which has now become a key differentiator for many projects, as every year cement and concrete production generate around 8% of global emissions.
Circular material models: Reduce construction and demolition waste by reusing and recycling materials. For example, repurposing discarded lumber into flooring or recycling concrete for aggregate can significantly lower emissions.
Upskill your workforce: Investing in training programs ensures your team understands sustainable practices and can innovate within the framework of net zero targets. Working with your software platform providers to train your workforce—and, in some cases, your suppliers—can be the key to transforming sustainability efforts from a simple tick-box exercise into a strategic approach.
The business case for net zero construction.
Clients and investors are increasingly demanding sustainable practices, and governments worldwide are introducing stricter regulations and incentives for green construction. By taking the lead, companies can:
- Gain a competitive edge through innovation.
- Attract eco-conscious clients and investors.
- Reduce long-term operational costs through energy efficiency and waste reduction.
Why net zero is good for business.
The journey to net zero construction is as much about leadership as it is about technical solutions. By adopting sustainable practices, collaborating across the value chain, and leveraging innovation, the construction industry can reduce emissions while driving growth.
The real challenge lies not in whether it can be done, but in how quickly we can scale these efforts to meet the 2050 goal.
