Finance

Financial institutions incentivize the activities in the building system and influence the decisions concerning when and how assets are constructed. The financial sector is aware of its carbon footprint and improvement potentials in building operations. However, the CO₂ emitted during manufacturing and construction processes in the building value chain (embodied carbon) has yet to be measured by the financial institutions in their carbon accounting and disclosures.

It is paramount for the financial sector to assess its engagement in capital allocations and transactions that support the built environment and improve the industry-specific alignment with climate and sustainability targets. This is the only way for financial institutions to reach their climate commitments, better manage risks, safeguard investments and become more resilient. 

The workstream focuses on helping the financial institutions to implement their net-zero and sustainability commitments and achieve the targets set for built environment-related portfolios and transactions. With a common language and metrics, such as the Building System Carbon Framework, the financial sector can join forces with companies in the built environment to decarbonize the value chain faster and help the industry become more circular, nature-positive, healthy, inclusive and resilient.