New resources for the buildings sector make it easier than ever to set targets

The buildings sector is responsible for over one third of all energy-related emissions worldwide. With demand only expected to grow, it's more important than ever for companies across the sector to align their operations and value chains with a net-zero future.

That’s why we developed the Buildings Sector Target-Setting Criteria to support businesses across the supply chain. Whether it’s new or old buildings, the Criteria provides companies that own, develop, manage or finance real estate with criteria to set science-based targets in line with the latest climate science. It outlines specific target-setting methods to address operational emissions from existing buildings and upfront embodied emissions from new buildings.

The Criteria was initially published in August 2024 following a transparent, multi-stakeholder development process. Following a six-month grace period, the criteria are now compulsory for required users setting science-based targets (see Criteria 1,2 and 3 of the Criteria for what defines a ‘required user’).

Companies across the buildings value chain know that demand for new buildings and the means to operate them are expected to grow. Similarly, they understand that weather-related construction delays already cost billions of dollars each year. With these factors in mind, it’s more important than ever to set science-based targets to reduce buildings-related emissions. Aiming to cut emissions while meeting growing demand demonstrates leadership and resilience.

Buildings Criteria FAQ

Have questions about setting targets against buildings-related emissions? We’ve compiled the most frequently-asked questions (FAQs), covering everything from the applicability of criteria to how companies can estimate data when it’s not readily available.

Here are some examples:

FAQ #3: How does the release of the SBTi Buildings Criteria affect companies that have active commitments to set science-based near-term and/or net-zero targets?

From February 28, 2025, which marks the end of the six-month grace period from its publication, the SBTi Buildings Criteria is mandatory for:

• Companies and financial institutions with significant buildings-related scope 1, 2 and 3 (categories 1-14) emissions. If these emissions meet the thresholds specified in the SBTi Buildings Criteria (Buildings-C1 and/or C2) for operational and embodied emissions of new constructions, and if the company or financial institution qualifies for at least one of the user categories described in criteria Buildings-C3.
• Financial institutions with buildings-related financed scope 3 category 15 emissions. Financial Institutions are required to cover emissions from their real estate investing and lending activities.

FAQ #8: I have non-buildings and buildings-related emissions, how should I set targets? Do we need to use both the SBTi Corporate Net-Zero Standard and Buildings Criteria?

If a company has scope 1 and 2 emissions from other sources besides buildings-related emissions, it must set a separate scope 1 and 2 targets covering those emissions, following the SBTi Corporate Net-Zero Standard and/or the SBTi Corporate Near-Term Criteria.

Businesses must follow different criteria depending on if scope 3 emissions account for more or less than 40% of total emissions. See the rest of FAQ #8 for details.

FAQ #17: What is the best way to estimate energy consumption for new buildings without data?

As per the GHG Protocol Corporate Value Chain (Scope 3) Standard, when direct data on energy consumption is unavailable, companies should estimate energy use using consistent methodologies across their portfolio. Recommended approaches include:

• Industry averages or proxy data
• Modelling tools
• Emission factors and energy mix

Companies must disclose the methodologies and assumptions used in their reporting, ensuring transparency and consistency throughout the reporting period and across their portfolio. This helps ensure accuracy and comparability in emissions estimates, even when precise data is not yet available.

See the rest of FAQ #17 for more details on each of the three recommended approaches.

Buildings Criteria in Brief

We published the Buildings Criteria in Brief alongside the full criteria in August 2024. This document provides an overview of the key points in the Criteria. Reading this document is recommended if you are taking the first steps towards setting targets against buildings-related emissions.

With these resources, it’s easier than ever to set science-based targets to reduce emissions across the entire lifecycle of buildings. Take the first step towards building a net-zero future today by visiting the SBTi Services website.