The International Energy Agency estimates that buildings and construction are responsible for nearly 40% of total direct and indirect CO₂ emissions worldwide, the largest contribution of all sectors. While much of the conversation is centred around reducing energy for heating, cooling and lighting of buildings (accounting for 28% of global CO₂ emissions), little attention is still being paid to the 11% of global CO₂ emissions caused by the manufacturing, transport, construction and disposal of building materials, also known as "embodied carbon". The share of embodied carbon tends to increase over time and it is therefore crucial to focus on solutions such as wood construction, recycled steel and low-carbon cement going forward if the world is to meet the Paris Agreement global warming goals.

At onValues we observe a trend towards higher allocations to real estate in our clients’ portfolios. We are therefore committed to helping our clients find ways to reduce the greenhouse gas intensity of this asset class, mainly by partnering with developers and asset managers that have set out to substantially reduce direct and indirect emissions in their portfolios and have defined clear targets for this.