Why sustainability matters in construction

The construction and real estate sector is responsible for a staggering 40% of global carbon emissions and 34% of total energy consumption. As countries worldwide commit to ambitious climate goals, including net-zero emissions by 2050, the pressure is mounting on the construction industry to adopt more sustainable practices.

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The rise of specialized software in construction sustainability

To meet these challenges, a new generation of digital tools has emerged. Lifecycle Assessment (LCA) software, building energy modeling and simulation software, and ESG data management systems are becoming essential in calculating, reducing, tracking, and reporting carbon emissions across the entire building lifecycle, from design to demolition.

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Key segments and their roles

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1. LCA (Life Cycle Assessment)

LCA tools evaluate both embodied carbon (from construction materials) and operational carbon (from energy and water use). These solutions are now critical for regulatory compliance, especially in Europe where carbon footprint reporting is increasingly mandatory, and Environmental Product Declarations (EPDs) are becoming more available.

The LCA software landscape is becoming more competitive, with generalist LCA and many local vendors emerging, though they often have limited EPD databases and struggle with international compliance. One Click LCA stands out as the global leader, offering strong local compliance and the widest EPD coverage, yet is still seen as a small vendor. Many users still rely on manual LCA calculations using Excel or in-house methods, often supported by public databases.

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2. Building energy modeling and simulation software

These platforms simulate energy consumption based on building design and components like HVAC and lighting. They help developers optimize resource use early in the design phase, improving both efficiency and user well-being. Only a handful of specialized players compete with IES as the leading one, followed by DesignBuilder, and then series of basic tools as part of BIM modeling vendors.

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3. ESG management tools

ESG platforms consolidate sustainability metrics, offering compliance with frameworks like CSRD, SFDR, and GRESB. Leading providers such as Deepki in Europe and Measurabl in the US tend to offer a combination of end-to-end data solutions and complementary advisory services. However, the market is becoming increasingly fragmented with multiple local providers, especially within Europe.

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Why it matters now

• Governments are tightening regulations at an unprecedented pace. New policies across the EU, UK, and North America (specific states in the US) are pushing for mandatory LCAs, stricter carbon limits, and comprehensive ESG reporting.  

• Certifications like LEED and BREEAM, serving as the main environmental benchmarks in the market, are being increasingly mandated by developers or funding entities.

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Customer challenges

Despite the boom in sustainability tech, adoption remains uneven. Many construction firms face:

• Regulatory complexity across regions

• Limited in-house expertise in sustainability

• Fragmented or unreliable data

• Budget constraints

• Industry-wide resistance to innovation

Consequently, vendors offering user-friendly tools, advisory support, and automated data handling are gaining traction.

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What’s next: key market trends

• Integration of AI and IoT for automated data capture and anomaly detection

• Integrated sustainability assessment within BIM modeling & digital twins  

• Prefabricated construction to reduce on-site emissions and waste

• Cost-carbon analysis to balance sustainability with economic feasibility

• Circular economy practices, such as material reuse and recycling

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Market outlook

While still in an emergent phase, the sustainability software market is rapidly evolving. First-movers like OneClick LCA, Deepki, Measurable and IES distinguish themselves with robust technical offerings and global compliance. As regulations tighten and investor expectations rise, we expect widespread adoption of these tools, transforming sustainability from a “nice-to-have” to a “must-have” across the built environment.

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