Understanding the Shift to Six Emission Categories in the UK Construction Industry
- Jan 8
- 4 min read
Updated: Feb 2
Why the Old 3 Scopes Are No Longer Enough
The old system divides emissions into three scopes:
Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion on site).
Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling.
Scope 3: All other indirect emissions in the value chain (e.g., materials, waste, transport).
While this framework helped companies start measuring emissions, it often lacked clarity and detail, especially for complex industries like construction. Scope 3, in particular, covers a vast range of activities, making it difficult to identify specific areas for improvement.
For UK construction companies, this meant challenges in:
Pinpointing which activities cause the most emissions.
Engaging subcontractors and suppliers effectively.
Reporting emissions transparently to clients and regulators.
The new six emission categories address these issues by breaking down emissions into more precise groups.
The New Six Emission Categories Explained
The updated framework divides emissions into six categories, providing a more granular view of where emissions come from. These categories are:
Direct Emissions from Construction Activities
Emissions from on-site machinery, vehicles, and fuel combustion directly controlled by the company.
Purchased Energy Emissions
Emissions from electricity, heating, and cooling bought for construction sites and offices.
Material Production and Supply Chain Emissions
Emissions generated during the extraction, manufacture, and transport of construction materials like concrete, steel, and timber.
Transport and Logistics Emissions
Emissions from moving materials, equipment, and waste between suppliers, sites, and disposal facilities.
Waste Management Emissions
Emissions from handling, processing, and disposing of construction waste, including landfill and recycling processes.
Employee Commuting and Business Travel Emissions
Emissions from workers traveling to sites and offices, including company vehicles and public transport.
This breakdown allows companies to see emissions in specific areas rather than lumping many activities into one broad category.
Benefits of the New Categories for UK Construction Companies
Clearer Emission Tracking
By separating emissions into six categories, companies can identify which parts of their operations contribute most to their carbon footprint. For example, a tier 1 contractor might discover that material production accounts for 40% of their emissions, while direct site activities only make up 20%. This clarity helps focus efforts where they matter most.
Better Engagement with Subcontractors
Subcontractors often handle specialised tasks and materials. The new categories make it easier to assign responsibility and track emissions across the supply chain. For instance, a subcontractor responsible for waste management can report emissions specifically under that category, improving transparency and accountability.
Improved Reporting and Compliance
Clients and regulators increasingly demand detailed environmental reporting. The six-category system aligns better with emerging UK and international standards, making it easier to comply with regulations like the UK’s Building Safety Act and net zero targets.
Enhanced Decision-Making
With detailed data, companies can make smarter choices. For example, if transport emissions are high, they might switch to local suppliers or invest in electric vehicles. If material production emissions dominate, they could explore low-carbon alternatives like recycled steel or sustainably sourced timber.
Supports Sustainability Goals
Breaking down emissions helps companies set realistic, measurable targets for each category. This approach supports the UK construction sector’s broader goal of reaching net zero carbon emissions by 2050.
Practical Steps for Construction Companies to Adopt the New Categories
Conduct a Detailed Emission Audit
Start by gathering data for each of the six categories. Use site fuel logs, electricity bills, supplier information, transport records, and waste reports. Many companies find using Sustainable Contractor a helpful way to organise and analyse this data.
Collaborate with Supply Chain Partners
Engage subcontractors and suppliers early. Share the new categories and encourage them to track and report emissions accordingly. This collaboration builds trust and improves data accuracy.
Set Category-Specific Targets
Instead of a single overall reduction goal, set targets for each emission category. For example:
Reduce direct site emissions by 15% in two years.
Cut transport emissions by 20% by switching to electric vehicles.
Increase recycled material use to lower material production emissions.
Invest in Training and Awareness
Educate site managers, procurement teams, and subcontractors about the new categories and why they matter. Clear understanding leads to better data collection and more effective emission reduction actions.
Use Data to Drive Innovation
Analyse emission data to find opportunities for innovation. For example, adopting modular construction can reduce waste and transport emissions. Using renewable energy on site can lower purchased energy emissions.
Case Example: How a Tier 1 Contractor Improved Emission Management
A leading UK tier 1 contractor recently switched to the six-category system. They found that transport and logistics accounted for nearly 30% of their emissions, higher than expected. By working with local suppliers and investing in electric site vehicles, they cut transport emissions by 25% within a year. This change also reduced costs and improved project timelines.
Meanwhile, their subcontractors focused on waste management emissions, introducing better sorting and recycling processes that reduced landfill waste by 40%. Together, these efforts helped the company meet client sustainability requirements and win new contracts.
Challenges and How to Overcome Them
Data Collection Complexity
Gathering accurate data across six categories can be time-consuming. Companies should prioritise categories with the highest emissions first and gradually expand data collection.
Supply Chain Cooperation
Not all subcontractors may have the capacity to track emissions. Providing simple reporting templates and offering support can improve participation.
Cost Concerns
Some emission reduction measures require upfront investment. Highlighting long-term savings and reputational benefits can help justify these costs.
Conclusion: Embracing the Future of Emission Management
Tracking emissions with the new six categories gives UK construction companies a clearer picture of their environmental impact. This detailed approach supports better decision-making, stronger supply chain collaboration, and improved reporting. For tier 1 contractors and subcontractors alike, adopting this system is a practical step toward meeting net zero goals and staying competitive in a changing market.
Comments