Any path to net zero requires clear reasoning and meticulous accounting, beginning with precise measurements of all GHG emissions in order to more effectively manage reduction commitments across all three GHG emissions scopes.
Those who can most effectively lead in the adoption of decarbonisation solutions are likely to create and capture the greatest value during this transition.
Survey findings
Routes to net zero
Our survey indicated a slow trajectory of incorporating net-zero targets into the business goals:
- Almost 80 percent of our survey respondents stated their business had not yet set a net-zero goal. That said, 44 percent noted their business planned to do so within the next 18 months, highlighting the impact of COP28 on awareness and objectives.
- Of those who said their business had set sustainability or net-zero goals, just over half felt that they were progressing in accordance with these goals, with 10 percent stating they were making significantly more progress than they had forecast to by this point in time. This shows the value of a robust and pragmatic decarbonisation plan in supporting businesses’ net-zero ambitions.
- For those who said their business had made less progress or none at all, the primary reasons for this were cost constraints and a lack of awareness or a clear commitment to translating aspiration into action.
- While a third of our survey respondents noted they currently do some level of Environment, Social, Governance (ESG) reporting, less than a quarter (21 percent) provide annual feedback. This makes it challenging to monitor the impact of commitments and the lack of disclosure can undermine investor and public confidence.
One area impeding impact around net zero is the lack of verification of carbon commitments and the lack of interim targets to demonstrate progress. Just one-third of survey respondents’ businesses have Science Based Targets or other external third-party verification and less than 30 percent have interim targets for 2025 or 2030. Both components are key to the successful implementation of net-zero strategy and provide valuable indication of progress and support in the business-wide engagement around the net-zero journey.
“There is an opportunity for businesses to be more effective in their approach through the development of robust implementation strategies and through the enactment of necessary internal support systems and processes – both of which can help drive progress on net-zero commitments.”
Lindsey Malcolm, Sustainability Lead, Middle East
Net-zero commitments cannot be achieved through strategy alone. It is critical to determine a tangible, efficient and affordable path to the commitment, translating targets into a practical and achievable implementation plan. This ensures a pragmatic strategy that is aligned with business objectives, and which embeds the necessary ways of working to successfully manage, monitor and control improved carbon performance – an approach that is lacking for many in the construction industry.
Net zero should be viewed as both the end objective and the means to get there, a journey to a state where impact is minimised and continues to be so. Net-zero considerations have to become business as usual for industry leaders, which in turn will suffuse the wider industry and society with greater optimism and accelerate adoption by others.
Expanding the perspective from business to industry, we asked our respondents whether they thought the built environment sector has sufficient awareness and understanding to achieve the net-zero targets we need at a national level.
* Graph above indicates the level to which survey respondents felt the built environment has awareness and understanding surrounding key factors relating to net zero.
As illustrated, the majority of respondents felt that there is a lack of awareness around the issues, challenges, and opportunities, coupled with a need for greater understanding about what action to take and how to facilitate the change needed. Coupled with this is a perceived shortage of regulation as a driver, particularly from the developer and client perspectives, which further illustrates the need for effective, consistent, and implementable regulation in this area.
A positive note highlighted is the recognition that we have the skills and technical capability to make this change, with 57 percent of respondents believing that we can address the challenges and leverage the opportunities.
Creating change on an industry level
According to our survey, many respondents are of the opinion that the burden of responsibility for achieving national net-zero targets in the region lies with the government and policymakers.
* Graph above illustrates respondents’ views when asked to rank roles according to responsibility for achieving national net-zero targets.
As illustrated, 79 percent of respondents felt government-led carbon targets, will help to steer businesses towards sustainable practices that are in line with the national policy position. Such an approach to cascading requirements through a regulatory framework mirrors that which has been seen to work well in other markets, such as the EU and parts of North America. To facilitate this in-region, the current state of play must be quantified to set out a pragmatic and impactful roadmap to drive change at pace across the industry
Regional perspectives on net zero
A selection of our latest net-zero intelligence and insights from our Middle East sustainability and programme delivery experts.
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