Engineering & Construction Services
Each section below relates to the TPT Disclosure Framework principles of Action and Accountability. The below provides further guidance for sub-elements 4.1 and 4.3. The TPT welcomes comments on this guidance to ensure it is as useful as possible for preparers and users. The text is open for comment until Friday, 24 November. Please select the feedback form at the bottom of the page. The final text will be updated in February.
The Engineering & Construction Services industry provides engineering, construction, design, consulting, contracting and other related services that support various building and infrastructure projects. The industry has four major segments: engineering services, infrastructure construction, non-residential building construction, and building subcontractors and construction-related professional services. The infrastructure construction segment includes entities that design or build infrastructure projects such as power plants, dams, oil and gas pipelines, refineries, highways, bridges, tunnels, railways, ports, airports, waste treatment plants, water networks and stadiums. The non-residential building construction segment includes entities that design or build industrial and commercial facilities such as factories, warehouses, data centres, offices, hotels, hospitals, universities and retail spaces such as shopping centres. The engineering services segment includes entities that provide specialised architectural and engineering services such as design and development of feasibility studies for many of the project types listed above. Finally, the building subcontractors and other construction-related professional services segment includes smaller entities that provide ancillary services such as carpentry, electrical, plumbing, painting, waterproofing, landscaping, interior design and building inspection.
1. Prioritise design and specification of built assets to have low/near-zero GHG materials2, 5, 7, 8
- prioritise energy-efficient built assets (e.g. enhanced insulation, energy-saving windows, efficient heating/cooling systems);
- design with resource efficiency/maximum resource effectiveness to reduce waste and over-use;
- prioritise the use of low/near-zero GHG materials and responsible use of renewable & biogenic materials;
- incorporate future circularity (design for deconstruction and reuse, use longer life materials); and
- select refrigeration and HVAC systems that utilise low-GWP refrigerants.
2. Implement energy-efficient and renewable solutions at construction site3
- utilise on-site renewable energy (e.g. solar-powered equipment);
- invest in energy-efficient, fossil fuel-free construction equipment and machinery;
- engage with projects that bolster renewable energy adoption;
- promote the use of energy storage solutions, like batteries, to optimise renewable energy use on-site.
3. Low-GHG emissions value chain (e.g., raw materials, transport, manufacturing, construction)3, 7, 8
- procure green products and encourage upstream partners to adopt green practices;
- supporting the manufacturing of low-GHG emissions transport modalities or infrastructure;
- utilise electric vehicles and support low-GHG emissions vehicles, including BEV, PHEV, and HEV; and
- recover and reuse cities’ waste materials (i.e. Urban Mining), such as concrete, bricks, steel reinforcements, roofing materials, etc.
- number of (1) commissioned projects certified to a third-party multi-attribute sustainability standard and (2) active projects seeking such certification;6
- amount of backlog for (1) hydrocarbon- related projects and (2) renewable energy projects;6
- amount of backlog cancellations associated with hydrocarbon-related projects;6
- amount of backlog for non-energy projects associated with climate change mitigation;6
- low-GHG emissions buildings share;1
- percentage of projects that achieve net zero embodied carbon8; and
- percentage of projects that have publicly shared their embodied carbon material specifications and lifecycle assessment data8.
- whole-life GHG emissions intensity (kgCO₂e/m²) of projects (renovated and new buildings) in which services were provided, following the GHG Protocol standards1, 3, 6; and
- whole-life GHG emissions absolute of projects (renovated and new buildings) in which services were provided, consistent with the GHG Protocol3.
Engineering and construction services literature
- Assessing low-Carbon Transition, Building Construction, 2022
- Carbon Risk Real Estate Monitor, How to manage your net zero targets with CRREM, 2022
- Climate Bonds Initiative, Buildings Criteria, 2020
- European Public Real-estate association, EPRA Sustainability Best Practices Recommendations Guidelines, 2017
- International Energy Agency, Transition to Sustainable Buildings, 2013
- IFRS, [Draft] Industry-based Guidance on Implementing IFRS S2, 2022
- ShareAction, Decarbonising Real Estate: Foundations for Success, 2021
- World Green Buildings Council, Bringing embodied carbon upfront
The TPT welcomes comments on the Sector Summary to ensure it is as useful as possible for preparers and users. The Sector Summary was open for comment until Friday 24 November and, following consideration of the feedback received, will be updated in February. Thank you to the industry experts who provided comments.