Navigating Carbon Accounting in Construction and Real Estate

Introduction

Carbon accounting is becoming increasingly important in the construction and real estate sectors. With the pressing need to achieve Net Zero pathways, comply with legal requirements, and fulfill Environmental, Social, and Governance (ESG) reporting obligations, businesses are focusing more on how to effectively measure and manage their carbon emissions. During a recent webinar hosted by the World Built Environment Forum, in partnership with DPY, experts discussed the intricacies of carbon accounting within these industries.

Understanding Carbon Accounting

Carbon accounting refers to the process of measuring the carbon emissions associated with specific economic activities. Emanuel Blane, Co-founder of DPY, highlighted the importance of clarity in carbon accounting, noting that the objectives of measurement could dictate the methodology used. Traditionally, carbon accounting has helped corporations get a preliminary idea of their direct and indirect emissions. However, as regulations evolve, the methods of accounting are becoming more sophisticated, focusing not just on assessment and reporting but on actionable insights and savings.

The Role of Regulation and Compliance

Debbie Hobs, Carbon and Net Zero Carbon Sustainability Director at CBR, emphasized the growing legal and voluntary compliance requirements for carbon reporting. She mentioned various legislative frameworks across the UK and the EU that mandate carbon reporting. This regulatory landscape underscores the importance of having a structured process for accumulating and measuring carbon emissions. As regulations tighten, companies are compelled to not only report their emissions but also actively work towards reducing them.

Taking Action Beyond Measurement

Mark Rogers, Director of Turner and Townsend, discussed how carbon accounting is a starting point for taking concrete actions towards reducing emissions. By understanding where emissions are highest, companies can focus their efforts more effectively. He also pointed out the importance of a clear strategy and roadmap for achieving Net Zero, indicating that carbon accounting can aid in setting policy directions and engaging employees in sustainability initiatives.

Challenges and Opportunities

The panelists acknowledged the challenges associated with carbon accounting, such as the need for accurate data collection and dealing with estimations when real data is not available. However, they also pointed out the opportunities for innovation and professionalization in this field. For instance, advancements in software and methodologies are making it easier to perform accurate carbon assessments, even during the construction stage.

Conclusion

Carbon accounting in construction and real estate is not just about compliance; it's about integrating sustainability into the core business strategy. As the industry moves towards a more standardized approach to carbon accounting, companies will be better equipped to make informed decisions that align with their Net Zero goals. The discussion also highlighted the need for continued innovation and collaboration among stakeholders to overcome the challenges and harness the opportunities that carbon accounting presents.

For more insights from the webinar, watch the full session here.