When we think of ESG in commercial real estate, we often picture rooftop solar panels, EV charging stations, or LEED plaques in lobbies. But beneath all those visible signs of sustainability lies a less obvious — and often more impactful — factor:
The materials your building is made of.
From steel to drywall to carpet glue, every product used in construction and renovation carries a hidden ESG footprint. And in 2025, those footprints are becoming harder to ignore.
Embodied carbon refers to the total greenhouse gas emissions generated during the extraction, production, transport, and installation of a material.
For example:
Concrete has a massive carbon load due to cement production
Aluminum and steel are energy-intensive to extract and process
Even “eco-friendly” materials can rack up emissions via long shipping routes
In fact, embodied carbon can account for 40–70% of a building’s total lifetime emissions — especially in new construction or major retrofits.
Investors, tenants, and regulators are increasingly asking:
What’s the carbon footprint of your renovations?
Where were your materials sourced?
Were labor practices ethical during extraction or production?
And because materials are hard to change once installed, this becomes a long-term ESG liability or asset.
| Material | ESG Concern |
|---|---|
| Concrete | Cement = ~8% of global CO₂ emissions |
| Glass & Aluminum | High embodied energy, especially if shipped overseas |
| Vinyl Flooring | Often contains PVC and VOCs; low recyclability |
| Foam Insulation | GWP of blowing agents can be severe |
| Tropical Hardwoods | Deforestation, biodiversity loss, supply chain opacity |
Not all of these need to be avoided — but they do need to be accounted for.
Ask for EPDs (Environmental Product Declarations)
These third-party reports disclose the true environmental impact of materials.
Buy local where possible
Transportation adds significant carbon — proximity helps.
Use recycled or reclaimed content
Products with circular lifecycle reduce embodied emissions.
Start tracking with software
ESG tracking platforms now let you input materials and see total carbon loads in real time.
Bids are starting to require it.
More RFPs include material impact scoring.
ESG funds are asking questions.
They want to know if your asset contains ESG risks at the structural level.
Tenant expectations are evolving.
Green certifications now dig deeper than just energy use — materials count.
[Embodied Carbon in Building Materials]
[Green Building Certifications (U.S.)]
Every slab, panel, and pipe leaves a footprint.
In 2025, the leaders in commercial real estate aren’t just choosing materials that look sustainable — they’re choosing ones that can stand up to ESG scrutiny, investor questions, and regulatory reviews.
And that choice starts long before you break ground.