The incredible opportunity in building renovation – The World Business Council for Sustainable Development (WBCSD)

Report on Energy Efficiency in Buildings and Alignment with Sustainable Development Goals
Introduction: The Role of the Built Environment in Sustainable Development
Large-scale energy efficiency renovations of buildings present a significant opportunity to deliver comprehensive and lasting economic, environmental, and social benefits. Buildings, including homes, schools, and workplaces, are fundamental societal assets. However, they are also a major source of global challenges, accounting for over a third of worldwide energy consumption and carbon emissions. Addressing the performance of the built environment is therefore critical to achieving global sustainability targets.
The Triple-Win Framework for Building Renovation and the SDGs
Investing in energy-efficient buildings offers a “triple-win” by simultaneously advancing economic prosperity, environmental protection, and social well-being. This approach directly supports the achievement of multiple Sustainable Development Goals (SDGs).
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Economic Benefits
Renovations drive economic growth and stability, aligning with SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).
- Cost Reduction: Proper insulation can reduce heating requirements by up to 70%, leading to lower energy costs for households and businesses.
- Energy Security: Reduced energy consumption lessens reliance on imported energy sources.
- Job Creation: The construction industry is a major employer, with renovations supporting local jobs and small to medium-sized enterprises (SMEs).
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Environmental Impact
Energy efficiency is a cornerstone of climate action, directly contributing to SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).
- Emissions Reduction: The International Energy Agency (IEA) states that energy efficiency can deliver 40% of the energy-related greenhouse gas emission reductions required by 2040 to meet Paris Agreement goals.
- Resource Efficiency: As the IEA’s designated “first fuel,” energy efficiency is the most critical resource in the clean energy transition.
- Circular Economy: Utilizing durable, recyclable, and long-lasting materials in renovations promotes circularity and responsible consumption patterns, supporting SDG 12.
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Social Well-being
High-performance buildings enhance quality of life, a key objective of SDG 3 (Good Health and Well-being) and SDG 11 (Sustainable Cities and Communities).
- Health Improvements: Well-insulated and ventilated buildings mitigate health risks associated with extreme temperatures, dampness, and mould, which can cause respiratory diseases.
- Productivity and Learning: Improved indoor environments with proper lighting, ventilation, and acoustics enhance productivity and learning capabilities.
- Alleviation of Energy Poverty: Energy-efficient renovations can lift households out of energy poverty, improving health outcomes and creating more equitable and sustainable communities.
Advocacy and Strategic Implementation
The Imperative to “Do Renovation Right”
Effective implementation requires convincing policymakers, building owners, and financial institutions of the multifaceted benefits. A key principle is to “do renovation right,” as most buildings are only renovated once in their lifetime. This involves a dual focus on short-term gains and long-term sustainability.
- Near-Term Strategy: The EU’s Energy Performance of Buildings Directive serves as a model by prioritizing the renovation of the worst-performing buildings first. This approach maximizes immediate economic, environmental, and social returns, thereby building public support.
- Long-Term Vision: For lasting impact, renovations must utilize materials that are durable, non-combustible, and recyclable. This ensures the creation of a new generation of buildings that are energy-efficient, safe, and circular, fully aligning with the long-term vision of the SDGs.
Analysis of Sustainable Development Goals in the Article
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The article on energy-efficient building renovations connects to several Sustainable Development Goals (SDGs) by highlighting the economic, environmental, and social benefits of improving the building sector. The following SDGs are addressed:
- SDG 3: Good Health and Well-being: The article discusses how well-insulated and properly renovated buildings improve the health and well-being of occupants.
- SDG 7: Affordable and Clean Energy: The core theme of the article is energy efficiency in buildings to reduce energy consumption.
- SDG 8: Decent Work and Economic Growth: The text points to the economic benefits of renovation projects, including job creation and support for local businesses.
- SDG 11: Sustainable Cities and Communities: The article focuses on improving the building stock (homes, schools, hospitals), which is a fundamental component of sustainable urban development.
- SDG 12: Responsible Consumption and Production: The promotion of durable, recyclable, and long-lasting building materials aligns with the principles of a circular economy and sustainable production.
- SDG 13: Climate Action: The article directly links energy efficiency in buildings to the reduction of carbon emissions and the achievement of climate goals.
2. What specific targets under those SDGs can be identified based on the article’s content?
Based on the article’s discussion, several specific SDG targets can be identified:
- Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The article is centered on this target, stating that “proper insulation potentially reducing heating needs by up to 70 percent” and quoting the IEA that “No other energy resource can compare with energy efficiency.”
- Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article supports this by highlighting that buildings are responsible for “more than a third of… carbon emissions” and that energy efficiency can deliver “40 percent of energy-related greenhouse gas emission reductions needed by 2040 to reach Paris climate goals.” The EU’s Energy Performance of Buildings Directive is cited as a policy example.
- Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities. Renovating buildings to be more energy-efficient directly reduces their environmental footprint, contributing to this target. The focus on renovating the “worst performing buildings first” is a strategy to maximize this impact.
- Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination. While not explicitly mentioning this target, the article’s content aligns with its goal. It states that poor building conditions (humidity, dampness) can lead to “mould growth, which can lead to respiratory diseases,” and that renovations improve health.
- Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The article advocates for doing “renovation right for the long-term” by “using building materials that are durable, recyclable, and non-combustible… that can be recycled at end of their useful life,” which directly relates to this target.
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation. The article notes that the construction industry employs “16 million people… in the EU” and that “95 percent of construction sector is composed of micro, small, and medium-sized businesses,” indicating that renovation projects support local economies and job creation.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article mentions or implies several quantitative and qualitative indicators that can be used to measure progress:
- Indicator for Target 7.3 (Energy Efficiency): The article provides a direct performance metric: “proper insulation potentially reducing heating needs by up to 70 percent.” This percentage reduction in energy consumption for heating is a clear indicator of improved energy efficiency.
- Indicator for Target 13.2 (Climate Action): The article provides baseline and target indicators for emissions. The baseline is that buildings are responsible for “more than a third of energy use and carbon emissions.” A progress indicator is the potential for energy efficiency to “drive 40 percent of energy-related greenhouse gas emission reductions needed by 2040.”
- Indicator for Target 8.3 (Economic Growth): The article uses employment figures as an indicator of economic impact, stating that “16 million people are directly employed in the construction industry in the EU.” The structure of the industry (“95 percent of construction sector is composed of micro, small, and medium-sized businesses”) is another indicator of localized economic benefit.
- Indicator for Target 12.5 (Responsible Consumption): A qualitative indicator is the adoption rate of “durable, recyclable, and non-combustible” materials in renovation projects. The creation of “circular buildings” is mentioned as a long-term goal, progress towards which could be measured.
- Indicator for Target 3.9 (Health and Well-being): The article implies qualitative health indicators, such as a reduction in the incidence of respiratory diseases associated with mould, improved mental health, and increased productivity and learning abilities in occupants of renovated buildings.
4. SDGs, Targets, and Indicators Table
SDGs | Targets | Indicators |
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SDG 3: Good Health and Well-being | Reduce illnesses from poor living environments (related to Target 3.9). | Implied reduction in respiratory diseases from mould; improved mental health and productivity in renovated buildings. |
SDG 7: Affordable and Clean Energy | Target 7.3: Double the global rate of improvement in energy efficiency. | Percentage reduction in energy consumption for heating (e.g., “up to 70 percent”). |
SDG 8: Decent Work and Economic Growth | Target 8.3: Promote policies that support decent job creation and support for small businesses. | Number of people employed in the construction sector (e.g., “16 million people… in the EU”); percentage of small and medium-sized businesses in the sector (e.g., “95 percent”). |
SDG 11: Sustainable Cities and Communities | Target 11.6: Reduce the adverse per capita environmental impact of cities. | Number/percentage of worst-performing buildings renovated; overall reduction in energy consumption and emissions from the building stock. |
SDG 12: Responsible Consumption and Production | Target 12.5: Substantially reduce waste generation through recycling and reuse. | Use of “durable, recyclable, and non-combustible” materials; development of “circular buildings.” |
SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies. | Percentage of total carbon emissions from buildings (baseline: “more than a third”); percentage of emission reductions achievable through energy efficiency (target: “40 percent”). |
Source: wbcsd.org