Facade & ESG

Measuring Impact through Sustainability Reporting

Overview

Abstract

In 2023, the International Sustainability Standards Board (ISSB) inaugurated the first two global sustainability disclosure standards IFRS S1/S2 to systematize the ESG standards, frameworks, and initiatives across industries and geographies. Publicly listed companies in the U.S. are required by law to disclose sustainability performance including key disclosure metrics such as energy consumption and greenhouse gas emissions. The ESG framework is increasingly becoming a global standard, including in the rapidly developing Asia region. This study explores the implications of ESG reporting on facade practice in five attributes: reporting scope, energy impact, material impact, impact categories, and compliance. A portfolio of a U.S. architect practicing in Greater China was referenced in the case study. Carbon accounting and life cycle assessment were performed to quantify facade impact. The results show that the impacts go beyond greenhouse gas emissions and include natural capital and human health. For a highrise building with facade-associated energy saving 2,950,000 kWh per year, it also reduces greenhouse gas emission of 2.329 x 106 kg CO2-eq, fossil fuel depletion 8.95 x 105 kg oil-eq, particulate matters 1.215 x 103 m2a., and water depletion 1.427 x 106 m3. The challenges and opportunities of applying ESG framework to facade are also discussed from global perspectives.


Authors

Photo of Vikki Lew

Vikki Lew

Project Architect

Skidmore, Owings & Merrill LLP


Keywords

Paper content

ESG, which stands for environment, social, and governance, is a financial approach linking sustainability goals and implementation in businesses. ESG recognizes that a company’s financial performance depends on the stakeholders

Access Restricted

Footnotes

Access Restricted

Acknowledgements

This work was made possible with the Richard Upjohn Research Fellowship from The American Institute of Architects.



Access Restricted

Rights and Permissions

Allen, J.A., Bernstein, A., Cai, X., Eitland, E.S., Flanagan, S., & Google, M. (2022). 9 FOUNDATIONS: Clear and actionable core elements of healthy indoor environments. https://9foundations.forhealth.org/

Arup, and Saint-Gobain Glass. (2023). Understanding the carbon footprint of facades and the role of glass. https://www.arup.com/-/media/arup/files/publications/a/arup-sgg---carbon-footprint-of-facades.pdf

ASHRAE. (2021). ANSI/ASHRAE Standard 169-2020: Climatic Data For Building Design Standards. https://www.ashrae.org/file%20library/technical%20resources/standards%20and%20guidelines/standards%20addenda/169_2020_a_20211029.pdf

Cabeza, L. F., Bai, Q., Bertoldi, P., Kihila, J.M., Lucena, A.F.P., Mata, É., Mirasgedis, S., Novikova, A., Saheb, Y. (2022). Intergovernmental Panel on Climate Change, Sixth Assessment Report, Working Group III, Chapter 9: Buildings. https://www.ipcc.ch/report/ar6/wg3/downloads/ report/IPCC_AR6_WGIII_Chapter09.pdf

Carbon Leadership Forum. (2020). Embodied Carbon 101. https://carbonleadershipforum.org/embodied-carbon-101/

CDP. (2022). CDP Technical Note: Relevance of Scope 3 Categories by Sector. https://cdn.cdp.net/cdp-production/cms/guidance_docs/pdfs/000/003/504/original/CDP-technical-note-scope-3-relevance-by-sector.pdf

China Association of Building Energy Efficiency. (2020). China Building Energy Research Report [in Chinese]. https://www.cabee.org/site/content/24021.html

Citherlet, S., F. Di Guglielmo, and J.-B. Gay. (2000). Window and Advanced Glazing Systems Life Cycle Assessment, Energy and Buildings 32 (3): 225-234.

Dai,W., Kelly, J.C. Sullivan, J.L., and Elgowainy, A. (2015). Life-Cycle Analysis Update of Glass and Glass Fiber for the GREETTM Model. https://greet.anl.gov/files/glass-fiber-update

EY. (2021). The future of sustainability reporting standards. https://assets.ey.com/content/...

Cabeza, L. F., Bai, Q., Bertoldi, P., Kihila, J.M., Lucena, A.F.P., Mata, É., Mirasgedis, S., Novikova, A., Saheb, Y., M., Heijung, R., Huijbregts, M., De Schryver, A., Struij, J., and van Zelm, R. (2009). ReCiPe 2008: A life cycle impact assessment method which comprises harmonised category indicators at the midpoint and the endpoint level, first edition, Report I: Characterisation. Accessed at https://web.universiteitleiden.nl/cml/ssp/publications/recipe_characterisation.pdf

GreenDelta. (2023). openLCA 2.0.4

GRESB (2023). GRESB 2023 Real Estate Scoring Document. Accessed Sept 2023 at https://documents.gresb.com/ generated_files/real_estate/2023/real_estate/scoring_document/complete.html

Hammond, G. P. & Jones, C. I. (2008). Embodied energy and carbon in construction materials. Proceedings of the Institution of Civil Engineers - Energy, 161(2), 87-98. https://doi.org/10.1680/ener.2...

Hirsch, J.J. (2018). eQuest v3.64. www.doe2.com

Hong Kong Stock Exchange. (2024). Exchange publishes conclusions on climate disclosure requirements. Accessed at https://www.hkex.com.hk

HSBC. (2023). Sustainability vs ESG: What’s the Difference and Why They Matter. Accessed Jan 2024 at https://www.businessgo.hsbc.com/en/article/demystifying-sustainability-and-esg

Huo, T., Cai, W., & Ren, H. (2019). China's building stock estimation and energy intensity analysis, Journal of Cleaner Production, 207 (2019), pp. 801-724. DOI: 10.1016/j.jclepro.2018.10.060

International Energy Agency. (2021a). Electricity mix in China. Accessed at https://www.iea.org/data-and-statistics/charts/electricity-mix-in-china-january-november-2020

International Energy Agency. (2021b). Average GHG emissions intensity for production of selected commodities. Accessed Jan 2024 at https://www.iea.org/

International Finance Corporation. (2024). Understanding the global reporting framework. Accessed at http://www.ifcbeyondthebalance...

International Sustainability Standards Board. (2022a). Draft IFRS S2 Climate-related Disclosures Appendix B Industry-based disclosure requirements Volume B36—Real Estate. https://www.ifrs.org/

International Sustainability Standards Board. (2022b). Engineering & Construction Services. Sustainability Accounting Standard, Industry Standard, version 2023-12. https://www.ifrs.org

International Sustainability Standards Board. (2023a). IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. https://www.ifrs.org/

International Sustainability Standards Board. (2023b). IFRS S2 Climate-related Disclosures. https://www.ifrs.org/

International Sustainability Standards Board. (2023c). Global Preparers Forum meeting, 3 March, 2023. https://www.ifrs.org/

Lai, G., Ye, Q., Chen, W., Hu, Z., & Hon, L. (2022). Electricity-carbon modeling of flat glass industry based on correlation variable, Energy Reports, Vol. 8, Supplement 13, Nov 2022, pp. 1265-1274.

Li, M., Li, W., Cheng, Q., & He, Y. (2011). Life cycle assessment for carbon emission of plate glass industry, Environmental Engineering and Management Journal, 10(6):739-742. DOI:10.30638/eemj.2011.099

London Energy Transition Initiative. (2020). Embodied Carbon Primer. https://www.leti.uk/ecp

NREL. (2023). End-Use Load Profiles for the U.S. Building Stock. https://www.nrel.gov/buildings/end-use-load-profiles.html

The People’s Republic of China. (2004). Initial National Communication on Climate Change. https://unfccc.int/resource/docs/natc/chnnc1e.pdf

Principles of Responsible Investing. (2023). Mapping ESG: A landscape review of certifications, reporting frameworks and practice. https://www.unpri.org/real-estate/mapping-esg-a-landscape-review-of-certifications- reporting-frameworks-and-practices/11348.article

Richardson, K., Steffen, W., Lucht, W., Bentsen, J., Cornell, S.E., Donges, J.F., Druke, M., Fetzer, I., Bala, G., von Bloch, W., Fiedler, S., Gerte, D., Gleason, T., Hofmann, M., Huiskamp, W., Kummu, M., Mohan, C., Nogues-Bravo, D., Petra, S., Rahmstorf., S., Rockstrom, J. Schaphoff, S., Thonicke, K., Tobian, A., Virkki, V., Wang-Erlandsson, L., & Weber, L. (2023). Earth beyond six of nine planetary boundaries. Vol 9, Issue 37. doi: 10.1126/sciadv.adh2458

Senate Bill 253 Climate Corporate Data Accountability Act. (2023). California State Senate. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB253

Senate Bill 261 Greenhouse Gases: Climate-related Financial Risk. (2023). California State Senate. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB261

Shanghai Stock Exchange. (2024). SSE Solicits Public Opinions on Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies Sustainability Report (Trial) (Draft for Comments). http://english.sse.com.cn/news/newsrelease/c/c_20240222_10751120.shtml

Sustainability Assessment Standards Board, (2023a). Industry Guide, Real Estate. https://sasb.org/standards/download/

Sustainability Assessment Standards Board, (2023b). Materiality Finder, Real Estate. https://sasb.org/standards/materiality-finder/ find/?industry%5B0%5D=IF-R

United Nations Environment Programme, The Global Compact. (2004). Who cares win: Connecting financial market to a changing world. https://www.unepfi.org/fileadmin/events/2004/stocks/who_cares_wins_global_compact_2004.pdf

United Nations Environment Programme. (2019). Changing Course: Real Estate - TCFD Pilot Project report and Investor Guide to Scenario-Based Climate Risk Assessment in Real Estate Portfolios. https://www.unep.org/resources/report/buildings-and-climate-change-status-challenges-and-opportunities

United Nations Environment Programme. (2022). 2022 Global Status Report for Buildings and Construction. https://www.unep.org/resources/ publication/2022-global-status-report-buildings-and-construction

United Nations Environment Programme, Finance Initiative. (2023). Unboxing Nature-related Risks: Insights from the UNEP FI-led TNFD Piloting Programme. https://www.unepfi.org/publications/unboxing-nature-related-risks-insights-from-the-unep-fi-led-tnfd-piloting-programme/

United Nations Environment Programme, Finance Initiative. (2024). Accountability for Nature: Comparison of nature-related assessment and disclosure frameworks and standards. https://www.unepfi.org/publications/accountability-for-nature-comparison-of-nature-related-assessment-and-disclosure-frameworks-and-standards/

Usbeck, V.C., Pfleiger, J., & Sun, T. (2010). Life cycle assessment of float glass. https://glassforeurope.com/wp-content/uploads/2018/04/Life-Cycle-Assessment.pdf

U.S. Energy Information Administration. (2022). What is U.S. electricity generation by energy source? https://www.eia.gov/energyexplained/us-energy-facts/data-and-statistics.php

U.S. Green Building Council. (2013). LEED v4 Impact Category and Point Allocation Process Overview. https://www.usgbc.org/resource...

Usbeck, V.C., Pfleiger, J., & Sun, T. (2010). Life cycle assessment of float glass. https://glassforeurope.com/wp-content/uploads/2018/04/Life-Cycle-Assessment.pdf

World Economic Forum. (2023). The “No-Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Chains Industry Net Zero Accelerator Initiative. https://www3.weforum.org/

World Resource Council for Sustainable Development. (2015). Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard. https://ghgprotocol.org/corporate-standard

World Resource Council for Sustainable Development. (2015). Corporate Value Chain (Scope 3) Standard. Accessed at https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf

World Resource Council for Sustainable Development. (2013). Technical Guidance for Calculating Scope 3 Emissions, Category 11: Use of Sold Products. https://ghgprotocol.org/sites/default/files/2022-12/Chapter11.pdf

Yang, W. & Li, J. (2021). What China's Carbon Neutrality Means for its Building Stock. https://www.buildingsandcities.org/insights/commentaries/cop26-china.html

Zhang, H., Cai, J. P, & Braun, J. E. (2022). A whole building life-cycle assessment methodology and its application for carbon footprint analysis of U.S. commercial buildings, Journal of Building Performance Simulation, Vol. 16, Issue 1, pp. 38-56. https://doi.org/10.1080/19401493.2022.2107071

Zhu, C., Yang, Z., Huang, B., & Li, X. (2023). Embodied Carbon Emissions in China’s Building Sector: Historical Track from 2005 to 2020, Buildings, Volume 13, Issue 1. doi: 10.3390/buildings13010211



Access Restricted

Author Comments

Access Restricted