The Dutch government has set climate targets to reduce carbon emissions by 49% by 2030 and 95% by 2050 with respect to the 1990 levels. The construction sector contributes to 38% of national emissions making it a major contributor to climate change. The significant stock of existing buildings in the Netherlands presents a vital opportunity to reduce greenhouse gas emissions, particularly as many of these buildings were constructed before the adoption of sustainability standards. Real estate institutional investors, who manage large portfolios of these older buildings, are key to driving this transition. While their current renovation practices focus primarily on operational carbon reduction, a whole-life carbon (WLC) approach incorporating embodied carbon is essential for meeting the Netherlands' climate targets. Despite recognizing WLC's importance, investors lack practical guidance for implementation. This research investigates how real estate institutional investors can incorporate embodied carbon considerations into their current energetic renovation processes in the Netherlands.
Through literature review and semi-structured interviews with leading real estate institutional investors from the Dutch Green Building Council working group, followed by expert panel validation, the study identifies their strategic roles in driving market demand and shaping sustainability practices, examines their current energetic renovation processes, analyzes key barriers and explores enablers for embodied carbon integration into their current energetic renovation processes.
The study develops a dual-level approach at strategic and project levels to address these barriers while leveraging identified motivators. Key findings reveal that successful WLC integration requires: (1) alignment with current renovation practices through phased implementation, (2) critical stakeholder engagement across the value chain, (3) market-driven strategies as enablers, and (4) knowledge and capacity-building. The research contributes by developing a systematic approach to integrate whole-life carbon into renovation processes, addressing barrier interconnections and stakeholder dynamics, while also offering practical, actionable strategies that align with existing workflows to help investors balance immediate needs with long-term sustainability goals.