Embodied carbon: the blind spot that could derail net zero

Where the emissions really begin

Embodied carbon refers to the greenhouse gases emitted across a building’s life cycle, from material extraction and manufacturing through to transportation, construction, operation, maintenance and end of life. For modern, energy-efficient properties, it often represents over half of total emissions, particularly in the first 30 years.

Despite growing awareness, many developers still underestimate the complexities involved in accurate quantification. Embodied carbon assessment is not a single number, but a system of assumptions, methodologies and quality data points that must be carefully aligned.

The technical barriers are significant. From database inconsistencies and the absence of universally adopted benchmarks, accurate reporting remains patchy. This can expose projects to reputational and regulatory risk, despite best intentions.

Learning from the Greater London Authority

The Greater London Authority (GLA) has established the clearest regulatory precedent so far. Its requirement for carbon assessments across a building’s whole life cycle has brought carbon modelling to the forefront of the planning process in Greater London.

Planning applicants are required to submit detailed calculations using a standardised template that covers whole-life carbon emissions in line with Royal Institution of Chartered Surveyors methodology. This is heavily scrutinised, ensuring that applications are consistently weighed and consultants do not cut corners.

This framework has triggered a behavioural shift in how and when carbon is considered within the GLA. It has moved the industry beyond compliance tick boxes and has placed carbon considerations at the heart of design decisions.

While councils outside London are increasingly encouraging and mandating embodied carbon studies, they lack the resources to verify the assessments as rigorously as the GLA. Unfortunately, this can leave gaps in meaningful carbon analysis that can create less impactful assessments.

Timing is everything

The greatest impact on embodied carbon can be made through early decisions at the design stage, particularly around a building’s structure, foundation and envelope. Yet too many assessments are carried out later on, when carbon-intensive decisions have already been made.

For example, if the concrete frames have already been specified, and the carbon assessment becomes a retroactive exercise, then 60-70% of the building’s embodied carbon has already been locked in. Because of the delayed approach to embodied carbon assessment, carbon assessment will provide few benefits at this point in the process.

Integrating carbon metrics as early as possible, when programme and cost are being decided on, enables developers to make informed trade-offs and align with carbon budgets.

Consistent carbon assessments

For developers and investors, the way forward is clear. Engage early in the embodied carbon assessment process by building it into every project brief from day one.

For existing real estate, investors are using embodied carbon and carbon payback to determine asset strategies, repositioning and approaches to retrofit. However, the challenges of comprehensive and consistent assessments remain.  

As embodied carbon reporting becomes a fixture of planning, finance and ESG disclosure, it is also becoming a competitive differentiator. Developers who treat embodied carbon assessments as part of the initial design process, rather than as a late-stage tick-box exercise, will lead the market in both sustainability and value for their portfolios and tenants.

If changing standards are a preview of the UK’s regulatory future, then the message is clear. Embodied carbon will shape the future of property development. Developers who master these processes today will be the ones who have the competitive edge tomorrow.

Deepika Singhal, head of ESG and sustainability, Hollis