Embodied Carbon: BranchPattern Unveils 2024 Benchmark Findings

Kristy Walson, principal at BranchPattern

Embodied carbon — the emissions generated during the manufacturing, transportation, and installation of building materials — represents a significant environmental challenge for industrial real estate. While operational carbon (Scopes 1 and 2) has been of focus for years, embodied carbon has remained largely unaddressed despite accounting for a substantial share of total building emissions. At various phases of the building lifecycle, embodied carbon even surpasses operational carbon emissions, depending on the local grid’s energy source. Reducing these emissions is imperative for meeting global climate goals, and fortunately, new data shows
that encouraging progress is being made.

In an industry-leading effort to quantify the embodied carbon footprint of U.S. industrial real estate assets, Denver-based BranchPattern has released the 2024 update to its Benchmark Study on Embodied Carbon in Industrial Real Estate. Building on insights from its 2023 report, this year’s study, supported by 10 industry leaders including Prologis, Link Logistics, and Bridge Industrial, delivers a deep dive into the embodied carbon intensity (ECI) of core and shell industrial buildings, revealing actionable pathways for meaningful reductions. The 2024 study also introduces an assessment of embodied carbon emissions associated with site work — a critical focus as leading green building certifications begin addressing site emissions in their standards.

One of the most striking findings from the 2024 study is a 4% reduction in ECI for core and shell buildings compared to last year, bringing the average down to 22.0 kg CO₂e per gross square foot (GSF). This reduction was informed by several factors, including greater use of low-carbon materials, increased focus on embodied carbon during the design phase, and improved data collection, supporting more accurate carbon accounting. These advancements stem from investor ESG goals, growing frameworks like GRESB, evolving climate-related disclosure requirements, and policies like California’s buy-clean legislation.

While this reduction is significant, the study attributes part of the improvement to its expanded dataset, underscoring the need for ongoing efforts to drive systemic change. Nonetheless, this progress presents a meaningful opportunity to align the sector with global climate goals, as the Science Based Targets Initiative (SBTi) calls for a 4.2% annual reduction in emissions to meet the Paris Agreement’s 1.5°C target.

To break down how these reductions were achieved, the report provides a quantified analysis of primary embodied carbon contributors in industrial development. Site pavement and buildings’ slab-on-grade foundations top the list as the largest assembly-based sources of emissions. At the same time, materials analysis shows concrete as the dominant culprit, accounting for 45% of a project’s embodied carbon, followed by steel at 21%. These findings emphasize the importance of targeted material and design innovations.

To successfully curb emissions during the product stage, which holds the greatest potential for reductions, the study outlines five practical strategies to reduce emissions tied to concrete and steel: reducing cement content, reimagining product mix, using low-carbon steel, optimizing paving design, and employing mass timber strategically.

“The industrial real estate sector must look beyond operational efficiency to tackle the hidden emissions embedded in construction materials and across design and construction processes,” says Nate Maniktala, principal at BranchPattern. “Our 2024 Benchmark Study provides a clear roadmap for reducing emissions while maintaining the economic and operational efficiency that leading developers and blue-chip tenants in the market have come to expect.

As regulatory and market pressures grow, reducing embodied carbon is not just a sustainability imperative — it’s a competitive advantage. Lifecycle assessments, design innovation, and collaboration with low-emission suppliers represent a clear path to progress, empowering the industrial sector to future-proof portfolios while contributing meaningfully to organizational and global climate goals.

Read the full report here.

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