Search posts by:

Search posts by:

Newsletter successfully sent
Failed to send newletter

AlwaysFree: Shell - Construction Industry Leaders Set Out Roadmap For Decarbonisation


  • Nearly 100 construction industry leaders from Europe, North America and Asia have helped set out an industry roadmap to decarbonise the construction value chain in a new report by Shell and Deloitte, “Decarbonising Construction: BUILDING A LOW-CARBON FUTURE”.

According to the company’s website news release on March 22, 2023, the report provides a value-chain assessment of the construction sector’s emissions and investigates the magnitude of emissions from ‘embodied carbon’. Embodied carbon emissions are associated with materials, logistics and construction activities, the most challenging aspects of construction to decarbonise, which together accounted for more than 16% of global CO2 emissions in 2020 – equivalent to five times a major sector like aviation.1

Additionally, the report provides a detailed analysis of the economic, regulatory, and organisational barriers affecting the sector’s ability to decarbonise.

To encourage progress, the report presents a roadmap to decarbonisation which contains 15 solutions that the industry needs to adopt to reach net zero. These solutions have been developed jointly with industry leaders and highlight the importance of scaling existing solutions in addition to the importance of collaboration from stakeholders across the value chain to develop new solutions. These range from measures to encourage increased investment in low carbon technologies, to upskilling workforces and knowledge sharing, and the introduction of policies and regulations to incentivise both the supply and demand of sustainable construction practices and solutions.

Raman Ojha, Vice President Shell Construction and Road, said: “The sector needs to start by accelerating the use of solutions that are available today while creating the conditions required to incentivise action and kickstart the adoption of new technologies. Everyone across the value chain has an important role to play – Shell is ready to work together with its partners across the sector to develop low-carbon construction solutions and encourage more decarbonisation initiatives.”

‘Decarbonising Construction: Building a Low-Carbon Future’ also emphasises the need for clear roles across the construction value chain, with all parties taking responsibility for aspects that they can directly influence. For example, construction companies can create demand signals for low carbon materials, and regulators, financiers, and asset owners can help create the incentives required for investment. Many of the solutions require participation from multiple stakeholders - with greater collaboration cited as key to decarbonising construction.

Quotes from Deloitte and study participants

  • Tarek Helmi, Partner, Deloitte Netherlands: “Decarbonising the construction sector can have a profound impact on global emissions and can accelerate action in a number of other sectors across the value chain.  Synchronizing regulation, and investment roadmaps between customer demand and material supply is necessary.  Engaging with nearly 100 executives and experts, we define 15 solutions for change, and explore best practices from around the world to inspire action.” 
  • Robert Spencer, Global Lead – ESG Advisory | AECOM: “This report lays bare the importance of each part of the construction industry understanding how it can leverage skills and knowledge for big picture impact on carbon. For infrastructure consultancies this means embedding decarbonisation of the design process across the construction lifecycle, as AECOM has done with its ScopeX initiative, alongside a sector-wide drive to increase the levels of carbon literacy among both the supply chain and clients.“
  • Dr. Heinrich Steins - General Manager bei BENNINGHOVEN GmbH & Co. KG: “It seems that the construction industry is at a hinge point. Sustainable construction will be a major contribution to a significant improvement of emission reduction globally.”
  • Jee Lian Ong, Group Chief Sustainability & Communications Officer, Executive Director Gamuda: “We aim to conduct our business in a sustainable manner by embracing decarbonisation journey via our Gamuda Green Plan 2025. We are intensifying investments in the renewable energy (RE) space, as well as low-carbon technology in building and construction to meet our target of GHG emission intensity reduction by 30% in 2025, and by 45% in 2030. Hence looking into our Scope 3 is imperative. Therefore, we are putting focus on our supply chain by providing ESG training for over 3,000 suppliers and business partners of ours - comprising builders, vendors, and consultants. As the market demand shifts, we are also taking steps to raise the confidence of our customers and investors by furthering our commitment with the adoption of the Science Based Targets initiative (SBTi); incorporating relevant climate adaptation measures into our project planning and design; and participating in shared knowledge platforms like the case studies and dialogues with Shell/Deloitte.”

Cautionary note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this content “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this content refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This content contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this content, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this content are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2022 (available at and These risk factors also expressly qualify all forward-looking statements contained in this content and should be considered by the reader. Each forward-looking statement speaks only as of the date of this publication mentioned on this website Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this content.

Shell’s net carbon intensity

Also, in this content we may refer to Shell’s “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

This content may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this content do not form part of this content.

We may have used certain terms, such as resources, in this content that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website

Tags: All Chemicals,All Markets,All Products,AlwaysFree,English,World

Published on April 10, 2023 3:36 PM (GMT+8)
Last Updated on April 10, 2023 3:36 PM (GMT+8)