Carbon emissions touch every aspect of our lives—from the buildings we live into the devices we use. But, not all emissions are created equal.

While operational emissions from energy use often grab attention, the hidden impact of embodied carbon in materials is just as significant. In this blog, we’ll break down the difference between embodied and operational carbon and explore actionable ways to reduce emissions for a sustainable future.

What is Carbon and Why Does It Matter?

Carbon, in the context of climate change, refers to the greenhouse gases (GHGs) emitted into the atmosphere, primarily carbon dioxide (CO2). These emissions result from activities such as burning fossil fuels, deforestation, and industrial processes. GHGs trap heat in the atmosphere, contributing to global warming and its associated impacts, including rising sea levels, extreme weather events, and biodiversity loss. Humans emitted 36.8 billion metric tons of CO2 in 2022 alone, marking a new record for global emissions. A significant portion of these emissions stems from the energy sector, which accounts for 73% of global emissions, with electricity and heat production making up 42% of that share.

Deforestation and forest degradation account for approximately 11% of global carbon emissions annually. The loss of forests not only releases stored carbon but also reduces the planet’s ability to sequester new carbon. This dual impact underscores the urgent need for forest preservation and reforestation initiatives. To meet the Intergovernmental Panel on Climate Change (IPCC) goal of limiting global warming to 1.5°C, global CO2 emissions must decline by about 45% from 2010 levels by 2030 and reach net zero by 2050.

Reducing carbon emissions is essential to achieving global climate goals, such as the Paris Agreement's target of limiting global warming to 1.5°C. This requires a comprehensive understanding of the different categories of carbon emissions and how they interconnect, paving the way for effective mitigation strategies.

To better understand how carbon emissions are generated, let’s examine two key contributors: embodied and operational carbon.

Embodied Carbon

The Hidden Footprint

Embodied carbon refers to the CO2 emissions associated with the production, transportation, and construction of materials and goods. Unlike operational carbon, which occurs during the use phase of a product or building, embodied carbon is "locked in" from the start.

Lifecycle Stage

Embodied carbon includes emissions from raw material extraction, manufacturing, and supply chain logistics. It is typically fixed and cannot be reduced once the product is created.

Primary Sectors Affected

Construction, manufacturing, and technology production.

Why It Matters

Embodied carbon often represents a significant share of total emissions, especially in industries reliant on energy-intensive materials. The World Green Building Council reports that embodied carbon contributes up to 50% of a building’s total lifecycle emissions.

• Skanska, a global construction firm, has implemented low-carbon concrete alternatives and tracked embodied carbon through digital tools to align with its net-zero goals.

• Apple continues to prioritize energy efficiency by optimizing HVAC systems across its facilities. By implementing low-pressure HVAC filters and energy-efficient solutions, Apple reduces the energy required for ventilation, cutting operational carbon emissions. These upgrades contribute to Apple’s commitment to becoming carbon neutral across its entire value chain by 2030.

Actionable Steps

1. Use low-carbon materials such as recycled steel, bamboo, or cross-laminated timber.

2. Conduct lifecycle assessments (LCAs) to identify high-impact areas.

3. Foster partnerships with suppliers that prioritize sustainability.

4. Incorporate modular designs to reduce material waste and embodied carbon.

   
   

Operational Carbon

The Active Emissions

Operational carbon refers to the emissions generated during the use phase of a product or building. These emissions result primarily from energy consumption for heating, cooling, lighting, and operating machinery.

Lifecycle Stage

Operational carbon is ongoing and occurs throughout the usable life of a building, product, or system.

Energy Sources

Fossil fuels, grid electricity, and renewable energy significantly influence operational carbon levels.

Major Contributors

Commercial buildings, data centers, and transportation systems are key sources of operational carbon.

Why It Matters

Operational carbon is the dominant contributor to global emissions in many industries. The International Energy Agency (IEA) notes that buildings account for approximately 30% of global final energy consumption and 26% of global energy-related CO₂ emissions.

A substantial share of this energy use is attributed to heating and cooling systems. Specifically, space heating and cooling, along with hot water, are estimated to account for roughly half of global energy consumption in buildings. This highlights the significant impact of heating and cooling systems on building energy consumption and emissions.

• The Empire State Building underwent a $550 million retrofit to improve energy efficiency, resulting in a 40% reduction in energy use and emissions.

• Google's data centers have implemented AI-powered cooling systems developed by DeepMind, reducing cooling energy use by 40%.

  
  

Actionable Steps

1. Transition to renewable energy sources such as solar or wind power.

2. Implement energy-efficient appliances, HVAC systems, and LED lighting.

3. Leverage building management systems (BMS) to optimize energy use in real time.

4. Set energy benchmarks and continuously monitor performance.

   
   

Beyond Embodied and Operational Carbon: Other Key Terms

1. Carbon Offset

Refers to compensating for emissions by investing in projects that reduce or remove CO2 from the atmosphere, such as reforestation or renewable energy initiatives.

• Delta Airlines invests in carbon offset programs, including reforestation projects in Kenya, as part of its commitment to becoming the first carbon-neutral airline.

  
  

2. Carbon Intensity

Measures the amount of CO2 emitted per unit of energy or production. This metric helps businesses evaluate and improve efficiency.

• Tesla measures the carbon intensity of its manufacturing processes to ensure sustainability across its electric vehicle lifecycle.

  
  

3. Sequestered Carbon

Describes carbon captured and stored in natural or artificial reservoirs. Forests, soil, and biochar are examples of natural carbon sinks.

4. Scope 1, 2, and 3 Emissions (from the Greenhouse Gas Protocol)

Scope 1

Direct emissions from company-owned resources.

Scope 2

Indirect emissions from purchased energy.

Scope 3

Emissions from a company’s value chain, including suppliers and end-users.

• Microsoft has pledged to become carbon-negative by 2030, aiming to reduce its Scope 1 and 2 emissions to near zero and cut its Scope 3 emissions by more than half.

  
  

  Read more about Scope 1,2,3 reporting here

  
  

Strategies for a Holistic Carbon Reduction Plan

To create impactful carbon reduction strategies, organizations must address both embodied and operational carbon and then their broader carbon footprint.

Here are some tips:

1. Adopt Lifecycle Assessments (LCAs): Evaluate the total carbon impact of products or projects from cradle to grave.

2. Invest in Innovation: Support research and development for low-carbon technologies, such as carbon capture and storage (CCS).

3. Set Science-Based Targets: Align emission reduction goals with the latest climate science.

4. Engage Stakeholders: Collaborate with suppliers, customers, and employees to foster a culture of sustainability.

5. Leverage Digital Solutions: Use AI and IoT technologies to monitor and optimize energy usage, reducing operational carbon.

6. Adopt Circular Economy Practices: Design products for reuse and recycling to minimize waste and embodied carbon.

   
   

Embodied carbon reveals the hidden costs of our built environment, while operational carbon highlights ongoing emissions challenges. By taking a lifecycle approach and addressing emissions at every stage, we can pave the way for a sustainable, net-zero future.

And business leaders play a pivotal role in this transition. Prioritizing sustainability in supply chains, investing in renewable energy, and adopting innovative practices allows companies to drive change that benefits both the planet and their bottom line.

As awareness grows, the responsibility to act lies with every sector of society. From adopting renewable energy solutions to rethinking material choices, the path forward demands innovation, collaboration, and a commitment to reducing carbon footprints.