CINXE.COM

<!DOCTYPE html><html dir="ltr" lang="en"><head><meta charSet="utf-8"/><meta name="viewport" content="width=device-width, initial-scale=1.0"/><meta http-equiv="X-UA-Compatible" content="IE=edge"/><script>var McKinsey = {"ArticleTemplate":"Legacy","DaysSinceCMSPublication":"634","DisplayDate":"7/14/2021","OriginalPublicationDate":"7/14/2021","SitecoreId":"{7108C6AF-2A1E-47EC-89C2-93E075C47657}","Title":"Call for action: Seizing the decarbonization opportunity in construction","ArticleType":"Article","ContentType":"Article","ServerNumber":"","IsPageRestricted":"true","UserID":"","RegistrationDate":"","LoginStatus":"logged_out","JobTitle":"","CompanyName":"","blogTags":null,"enableRegWall":false}; var pageMetaInformation = {"CurrentLanguage":"en","AlternateLanguages":[{"DisplayName":"English","LanguageCode":"en","Url":"/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction"}],"NavigationLink":"industries","ActiveItemId":"{D11A29DA-146F-41FB-85E1-D1DF2358F2AC}","OfficeCode":"","MiniSiteId":"{6C95986F-1869-4FB4-B081-CB710C010AF7}"};</script><link rel="icon" href="/favicon.ico"/><link href="https://www.mckinsey.com/redesign/resources/css/styles-rc.css" rel="stylesheet"/><link rel="manifest" href="/manifest.json"/><link rel="dns-prefetch" href="//cdn.dynamicyield.com"/><link rel="dns-prefetch" href="//st.dynamicyield.com"/><link rel="dns-prefetch" href="//rcom.dynamicyield.com"/><link rel="dns-prefetch" href="//cdn.cookielaw.org"/><link rel="preconnect" href="//assets.adobedtm.com"/><link rel="preconnect" href="//connect.facebook.net"/><link rel="preconnect" href="//static.hotjar.com"/><link rel="preload" as="font" href="/next-static/fonts/bower/Bower-Bold.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/mckinsey-sans/regular/McKinseySans-Regular.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/mckinsey-sans/medium/McKinseySans-Medium.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/mckinsey-sans/light/McKinseySans-Light.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/mckinsey-sans/italic/McKinseySans-Italic.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/mckinsey-sans/light-italic/McKinseySans-LightItalic.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/mckinsey-sans/medium-italic/McKinseySans-MediumItalic.woff2" type="font/woff2" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/noto-sans-jp/NotoSansJP-Light.ttf" type="font/ttf" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/noto-sans-jp/NotoSansJP-Regular.ttf" type="font/ttf" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/noto-sans-jp/NotoSansJP-Medium.ttf" type="font/ttf" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/noto-sans-jp/NotoSansJP-Bold.ttf" type="font/ttf" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/noto-sans-jp/NotoSansJP-Black.ttf" type="font/ttf" crossorigin=""/><link rel="preload" as="font" href="/next-static/fonts/noto-serif-jp/NotoSerifJP-Bold.ttf" type="font/ttf" crossorigin=""/><meta name="apple-itunes-app" content="app-id=674902075"/><link rel="apple-touch-icon" sizes="57x57" href="/next-static/images/mck-touch-icon-57x57.png"/><link rel="apple-touch-icon" sizes="72x72" href="/next-static/images/mck-touch-icon-72x72.png"/><link rel="apple-touch-icon" sizes="114x114" href="/next-static/images/mck-touch-icon-114x114.png"/><link rel="apple-touch-icon" sizes="144x144" href="/next-static/images/mck-touch-icon-144x144.png"/><link rel="apple-touch-icon" sizes="152x152" href="/next-static/images/mck-touch-icon-152x152.png"/><link rel="apple-touch-icon" sizes="167x167" href="/next-static/images/mck-touch-icon-167x167.png"/><link rel="apple-touch-icon" sizes="180x180" href="/next-static/images/mck-touch-icon-180x180.png"/><meta content="no-referrer-when-downgrade" name="referrer"/><meta content="McKinsey & Company" property="og:site_name" name="site_name"/><meta content="Call for action: Seizing the decarbonization opportunity in construction" property="og:title" name="title"/><meta content="As decarbonization initiatives gain momentum, construction players can benefit from this growing trend—as a strategic opportunity and collaboration with other stakeholders in the ecosystem." property="og:description" name="description"/><meta content="https://www.mckinsey.com/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction" name="url" property="og:url"/><meta content="index,follow,all" name="robots"/><meta content="https://www.mckinsey.com/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/call-to-action-1536x1536.jpg" property="og:image" name="image"/><meta content="{7108C6AF-2A1E-47EC-89C2-93E075C47657}" name="sid"/><link href="https://www.mckinsey.com/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction" rel="canonical"/><meta content="Real Assets" name="practice-name"/><meta content="N36" name="practice-code"/><meta content="summary_large_image" name="twitter:card"/><meta content="@mckinsey" name="twitter:site"/><title>Seizing the decarbonization opportunity in construction | McKinsey</title><meta content="Insights & Publications" name="sections"/><meta content="Call for action: Seizing the decarbonization opportunity in construction" name="twitter:title"/><meta content="As decarbonization initiatives gain momentum, construction players can benefit from this growing trend—as a strategic opportunity and collaboration with other stakeholders in the ecosystem." name="twitter:description"/><meta content="Article" property="contenttype" name="contenttype"/><meta content="https://www.mckinsey.com/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/call-to-action-1536x1536.jpg?mw=677&car=42:25" name="twitter:image"/><meta content="Call for action: Seizing the decarbonization opportunity in construction" name="twitter:image:alt"/><meta content="true" name="mobileready"/><meta content="public" name="accesslevel"/><meta content="false" name="excludefromclientlink"/><meta content="article" name="articletype"/><meta content="2021-07-14T00:00:00Z" name="itemdate"/><meta content="Real Assets | Article | July 14, 2021" name="searchresults-tags"/><script type="application/ld+json">{"@context":"https://schema.org","@type":"Article","url":"https://www.mckinsey.com","publisher":{"@type":"Organization","name":"McKinsey & Company","logo":{"@type":"ImageObject","url":"https://www.mckinsey.com/~/media/Thumbnails/Mck_Logo"}},"mainEntityOfPage":{"@type":"WebPage","@id":"https://www.mckinsey.com/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction"},"datePublished":"2021-07-14T10:00:00Z","dateCreated":"2021-05-26T10:31:30Z","dateModified":"2021-07-14T00:00:00Z","heading":"Call for action: Seizing the decarbonization opportunity in construction","image":"https://www.mckinsey.com/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/call-to-action-1536x1536.jpg","description":"As decarbonization initiatives gain momentum, construction players can benefit from this growing trend—as a strategic opportunity and collaboration with other stakeholders in the ecosystem."}</script><meta name="next-head-count" content="62"/><meta name="next-font-preconnect"/><script src="" id="onetrust-wrapperchecker" data-nscript="beforeInteractive">function OptanonWrapperChecker() {}</script><link rel="preload" href="/_next/static/css/e0c1ca92b5263a45.css" as="style"/><link rel="stylesheet" href="/_next/static/css/e0c1ca92b5263a45.css" data-n-g=""/><link rel="preload" href="/_next/static/css/985443d8095c0b48.css" as="style"/><link rel="stylesheet" href="/_next/static/css/985443d8095c0b48.css" data-n-p=""/><link rel="preload" href="/_next/static/css/b9ab7b649e8aa36e.css" as="style"/><link rel="stylesheet" href="/_next/static/css/b9ab7b649e8aa36e.css"/><link rel="preload" href="/_next/static/css/72fc56b1fbe032aa.css" as="style"/><link rel="stylesheet" href="/_next/static/css/72fc56b1fbe032aa.css"/><link rel="preload" href="/_next/static/css/06ae37db5ebc260c.css" as="style"/><link rel="stylesheet" href="/_next/static/css/06ae37db5ebc260c.css"/><link rel="preload" href="/_next/static/css/5e45d445fc213154.css" as="style"/><link rel="stylesheet" href="/_next/static/css/5e45d445fc213154.css"/><noscript data-n-css=""></noscript><script defer="" nomodule="" src="/_next/static/chunks/polyfills-5cd94c89d3acac5f.js"></script><script src="https://cdn.cookielaw.org/scripttemplates/otSDKStub.js" data-document-language="true" type="text/javascript" data-domain-script="915b5091-0d7e-44d2-a8c4-cf08267e52fe" defer="" data-nscript="beforeInteractive"></script><script defer="" src="/_next/static/chunks/281.cc3ac8578a543e8e.js"></script><script defer="" src="/_next/static/chunks/6731.9bccca8a7edb0704.js"></script><script defer="" src="/_next/static/chunks/2354.05223bcb67691d75.js"></script><script defer="" src="/_next/static/chunks/8578.3a4bfe7b76c8d5b2.js"></script><script defer="" src="/_next/static/chunks/8391.a64dec5b7b976b97.js"></script><script defer="" src="/_next/static/chunks/2991.4cb0aa2f9f53e653.js"></script><script src="/_next/static/chunks/webpack.7b31c4548c626f3b.js" defer=""></script><script src="/_next/static/chunks/framework.62bbe2ca94854a85.js" defer=""></script><script src="/_next/static/chunks/main.51e10588adc949ca.js" defer=""></script><script src="/_next/static/chunks/pages/_app.5f99628c3d07543d.js" defer=""></script><script src="/_next/static/chunks/3b1baa31.cd6cdac6158774d8.js" defer=""></script><script src="/_next/static/chunks/7d0bf13e.8f3383787afb45af.js" defer=""></script><script src="/_next/static/chunks/1354.c34ddc4bd7c986c8.js" defer=""></script><script src="/_next/static/chunks/408.2780008a4c2ee197.js" defer=""></script><script src="/_next/static/chunks/pages/%5B%5B...path%5D%5D.eb738e7c87df0dc8.js" defer=""></script><script src="/_next/static/9vYT_fWQKRjfPT7lAZJdB/_buildManifest.js" defer=""></script><script src="/_next/static/9vYT_fWQKRjfPT7lAZJdB/_ssgManifest.js" defer=""></script><script src="/_next/static/9vYT_fWQKRjfPT7lAZJdB/_middlewareManifest.js" defer=""></script> <script>(window.BOOMR_mq=window.BOOMR_mq||[]).push(["addVar",{"rua.upush":"false","rua.cpush":"false","rua.upre":"false","rua.cpre":"false","rua.uprl":"false","rua.cprl":"false","rua.cprf":"false","rua.trans":"","rua.cook":"false","rua.ims":"false","rua.ufprl":"false","rua.cfprl":"false","rua.isuxp":"false","rua.texp":"norulematch","rua.ceh":"false","rua.ueh":"false","rua.ieh.st":"0"}]);</script> <script>!function(a){var e="https://s.go-mpulse.net/boomerang/",t="addEventListener";if("False"=="True")a.BOOMR_config=a.BOOMR_config||{},a.BOOMR_config.PageParams=a.BOOMR_config.PageParams||{},a.BOOMR_config.PageParams.pci=!0,e="https://s2.go-mpulse.net/boomerang/";if(window.BOOMR_API_key="TURRK-8ADJT-WDUC5-TC32E-KV9ND",function(){function n(e){a.BOOMR_onload=e&&e.timeStamp||(new Date).getTime()}if(!a.BOOMR||!a.BOOMR.version&&!a.BOOMR.snippetExecuted){a.BOOMR=a.BOOMR||{},a.BOOMR.snippetExecuted=!0;var i,_,o,r=document.createElement("iframe");if(a[t])a[t]("load",n,!1);else if(a.attachEvent)a.attachEvent("onload",n);r.src="javascript:void(0)",r.title="",r.role="presentation",(r.frameElement||r).style.cssText="width:0;height:0;border:0;display:none;",o=document.getElementsByTagName("script")[0],o.parentNode.insertBefore(r,o);try{_=r.contentWindow.document}catch(O){i=document.domain,r.src="javascript:var d=document.open();d.domain='"+i+"';void(0);",_=r.contentWindow.document}_.open()._l=function(){var a=this.createElement("script");if(i)this.domain=i;a.id="boomr-if-as",a.src=e+"TURRK-8ADJT-WDUC5-TC32E-KV9ND",BOOMR_lstart=(new Date).getTime(),this.body.appendChild(a)},_.write("<bo"+'dy onload="document._l();">'),_.close()}}(),"".length>0)if(a&&"performance"in a&&a.performance&&"function"==typeof a.performance.setResourceTimingBufferSize)a.performance.setResourceTimingBufferSize();!function(){if(BOOMR=a.BOOMR||{},BOOMR.plugins=BOOMR.plugins||{},!BOOMR.plugins.AK){var e=""=="true"?1:0,t="",n="bdpnbeqx2cuayz2hdy6q-f-97af10ba4-clientnsv4-s.akamaihd.net",i="false"=="true"?2:1,_={"ak.v":"39","ak.cp":"19387","ak.ai":parseInt("285213",10),"ak.ol":"0","ak.cr":5,"ak.ipv":4,"ak.proto":"http/1.1","ak.rid":"7396acc","ak.r":50230,"ak.a2":e,"ak.m":"a","ak.n":"essl","ak.bpcip":"8.222.208.0","ak.cport":45118,"ak.gh":"23.39.162.5","ak.quicv":"","ak.tlsv":"tls1.2","ak.0rtt":"","ak.0rtt.ed":"","ak.csrc":"-","ak.acc":"reno","ak.t":"1732714045","ak.ak":"hOBiQwZUYzCg5VSAfCLimQ==VsJbdnZKTaE953NRevrIU5mCDX12TUpEJU88rfWe2e2q0GMujMopj1dj5gqL2SaM/GpXEQQQTwSfnuv+6tHwDD857rPaaZjn5+Ki82tq1A/45dnRoZb6ixV0gVYbK8IGHH6sJX7eY5EInddcvDh+WyFw2e8dh2r/PLrY48+iry/5jEp6Hw8D85Bxk3xhDqw9RdPAE96/gjk1LqOeyLVSxEcW92vHxAjzUJ1+IhcaQ/iq+YAtT7CDHsu0+4QbiQLULZFnCmEZutzlWukZAU+HHVFTroIUVgy29tvKmLk3x3tK9Ho/sU1+7UG6cQYU6qh40JVUnJIWYxefYCEvrSfz2XnQJQQDjMDtrYc2SYIkHT1eBBLWlME1DQ2AGYf9HfCbeqEXWQQIdxUSKzRNFI1KFDHXntOsmdn2zA3v8y3wBR4=","ak.pv":"581","ak.dpoabenc":"","ak.tf":i};if(""!==t)_["ak.ruds"]=t;var o={i:!1,av:function(e){var t="http.initiator";if(e&&(!e[t]||"spa_hard"===e[t]))_["ak.feo"]=void 0!==a.aFeoApplied?1:0,BOOMR.addVar(_)},rv:function(){var a=["ak.bpcip","ak.cport","ak.cr","ak.csrc","ak.gh","ak.ipv","ak.m","ak.n","ak.ol","ak.proto","ak.quicv","ak.tlsv","ak.0rtt","ak.0rtt.ed","ak.r","ak.acc","ak.t","ak.tf"];BOOMR.removeVar(a)}};BOOMR.plugins.AK={akVars:_,akDNSPreFetchDomain:n,init:function(){if(!o.i){var a=BOOMR.subscribe;a("before_beacon",o.av,null,null),a("onbeacon",o.rv,null,null),o.i=!0}return this},is_complete:function(){return!0}}}}()}(window);</script></head><body><div id="__next" data-reactroot=""><div class="Layout_mck-c-skipbar__K684J"><a data-component="mdc-c-link" href="#skipToMain" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--primary___Ed-lT_2734c4f mdc-c-button--size-medium"><span class="mdc-c-link__label___Pfqtd_2734c4f">Skip to main content</span></a></div><main class="mck-o-container--outer" data-layer-region="body" role="main" id="skipToMain"><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="AnchoredHero" class="ArticleDefault_mck-c-article-default__SfYQE"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-article-default ArticleDefault_mck-c-article-default__parallax-container__fZ7Iq"></div><div class="ArticleDefault_mck-c-article-default__gradient__Uu21n"></div><div class="ArticleDefault_mck-c-article-default__wrapper-content__XOe9C"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-lg-12"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-col-lg-start-1 mdc-u-grid-col-lg-span-10"><div><h1 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-2 mck-u-animation-slide-down ArticleDefault_mck-c-article-default__heading__bv6rL"><div>Call for action: Seizing the decarbonization opportunity in construction</div></h1></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-10 mck-u-animation-blur-in-800 ArticleDefault_mck-c-article-default__description__sjoe9"><div><time datetime="2021-07-14T00:00:00Z">July 14, 2021</time> | Article</div></div></div></div></div></div></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-gutter-xxl"><section data-layer-region="article-body-header" class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400 byline-share-container"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-7 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-8 mdc-u-ts-10"></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-5"><div class="mck-u-links-inline">As decarbonization initiatives gain momentum, construction players can benefit from this growing trend—but only if they view ESG as a strategic opportunity and collaborate with other stakeholders in the ecosystem.</div></div></div></section><main data-layer-region="article-body" class="mdc-u-grid mdc-u-grid-gutter-xxl"><div class="mdc-u-grid mdc-u-grid-col-1 mdc-u-grid-col-md-12"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div class="mdc-o-content-body mck-u-dropcap"> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="DownloadsSidebar_mck-c-downloads-sidebar__iFmyt mck-o-xs-right-span"><div data-layer-region="downloads-right-rail"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f"></h3><div><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f"><a data-component="mdc-c-link" href="#/download/%2F~%2Fmedia%2Fmckinsey%2Findustries%2Fengineering%20construction%20and%20building%20materials%2Fcall%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction%2Fcall-for-action-seizing-the-decarbonization-opportunity-in-construction-vf.pdf%3FshouldIndex%3Dfalse" class="DownloadsSidebar_mck-c-downloads-sidebar__download-link__fPqFQ mdc-c-link___lBbY1_2734c4f" target="_self" data-layer-event-prefix="Download Link" data-layer-action="click" data-layer-report-type="" data-layer-file-name="call-for-action-seizing-the-decarbonization-opportunity-in-construction-vf" data-layer-report-name="call-for-action-seizing-the-decarbonization-opportunity-in-construction-vf>"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--size-md___yi5fA_2734c4f mck-download-icon"></span><span class="mdc-c-link__label___Pfqtd_2734c4f"> (12 pages)</span></a></div></div></div></div> <p><strong>As one of the world’s</strong> biggest economic ecosystems, the construction industry has a major part to play in achieving global sustainability goals. “Ecosystem” in this article refers to the full life cycle (design, materials manufacturing, construction, usage, and demolition) of all residential and commercial buildings and infrastructure. While the industry is generally not seen as a sustainability pioneer, the entire ecosystem looks set to evolve.</p>  <p>The COVID-19 crisis will likely prove to be a significant factor in this, not least because it will accelerate change. In this context, it is critical that we now begin to integrate the thinking and planning required to foster much greater economic and environmental resiliency to combat environmental risks.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="" data-module-gradient-position="bottom-right" class="mck-c-inline-module-container SideBar_mck-c-sidebar__bgimg-wrapper__Qj4Dt mck-o-sm-left-span SideBar_mck-c-sidebar__sidebar-wrapper__Dpjw2 SideBar_mck-c-sidebar__sidebar-wrapper--istablet__IQ6ii mck-u-screen-only mck-c-module-wrapper" data-layer-region="sidebar"><div class="SideBar_mck-c-sidebar__epoAm mck-o-md-center"><div class="SideBar_mck-c-sidebar__share-icons-wrapper__9gB_c"><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f SideBar_mck-c-sidebar__share-icons___eQy6"><div data-component="mdc-c-dropdown-menu" class="mdc-c-drop-down"><button data-component="mdc-c-button" aria-label="" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium mdc-c-drop-down__rootmenu___yJzvz_2734c4f" aria-expanded="false" aria-haspopup="menu"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--default___f-hQM_2734c4f mdc-c-icon--size-md___yi5fA_2734c4f mck-share2-icon"></span></button><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class=""></div></div><button data-component="mdc-c-button" aria-label="Expandable Sidebar" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium SideBar_mck-c-sidebar__toggle-btn__EL8iE" aria-expanded="false" data-layer-event-prefix="UI Item" data-layer-action="click" data-layer-category="sidebar" data-layer-subcategory="open" data-layer-text="open sidebar"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--radial___y3csX_2734c4f mdc-c-icon--size-xxl___cL3ZT_2734c4f mck-plus-no-circle-icon"></span></button></div></div><div class="SideBar_mck-c-sidebar__content-outer__UdWCq"><div class="SideBar_mck-c-sidebar__eyebrow__5GSEq"></div><div class="SideBar_mck-c-sidebar__content__raEwe"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-3 SideBar_mck-c-sidebar__content-heading__NJekY"><div>About the authors</div></h2><div class="SideBar_mck-c-sidebar__content-description__4p9iI mdc-u-ts-7"><div class="mdc-o-content-body"><p>This article was a collaborative effort by <a href="/our-people/jose-luis-blanco">Jose Luis Blanco</a>, <a href="/our-people/hauke-engel">Hauke Engel</a>, Focko Imhorst, <a href="/our-people/maria-joao-ribeirinho">Maria João Ribeirinho</a>, and <a href="/our-people/erik-sjodin">Erik Sjödin</a></p></div></div></div></div></div></div> <p>This is a view that is reflected by industry leaders. When we asked 100 senior construction executives what trends they expected to accelerate due to the COVID-19 crisis, 53 percent cited sustainability. Reasons could include increased corporate awareness and understanding, as well as growing pressure from investors and financiers. <a href="/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem">Additionally, 10 percent said they had already increased investments in sustainability measures since the start of the crisis</a>. Moreover, sustainability has rapidly become one of the most frequent topics that clients ask us about. An additional factor to consider is that if the lower-interest-rate environment persists and significant stimulus packages materialize, it could contribute to the deployment of new sustainable infrastructure, as well as adaptation and resilience infrastructure—<a href="/capabilities/sustainability/our-insights/addressing-climate-change-in-a-post-pandemic-world">investments that would support near-term job creation</a>. Meanwhile, the need for global cooperation on this issue will likely become more apparent and more universally embraced.</p> <div data-module-category="" class="PullQuote_mck-c-pullquote__DbaQ5 mck-o-lg-center"><blockquote data-component="mdc-c-blockquote" class="PullQuote_mck-c-blockquote__6n21p PullQuote_mck-c-blockquote--hide-quotes__CpGpg mdc-c-blockquote mdc-c-blockquote--is-quotes___TozKo_2734c4f"><p>When we asked 100 senior construction executives what trends they expected to accelerate due to the COVID-19 crisis, 53 percent cited sustainability.</p></blockquote></div> <p>Supporting our clients’ efforts to improve sustainability in construction is one of McKinsey’s core priorities. We are combining our global expertise across our Engineering, Construction & Building Materials; Sustainability; Capital Excellence; and Real Estate Practices to drive advances in this area. This article focuses on the case for change by exploring construction’s impact on greenhouse-gas (GHG) emissions in the context of buildings, examining how the industry can decarbonize, and explaining how companies in the sector can benefit.</p> <h2>Measuring environmental impact</h2> <p>Environmental, social, and governance (ESG) factors are the key measures of a business’s sustainability and societal impact within the construction ecosystem. Metrics can be assessed across the entire ecosystem and throughout the life cycle of buildings and infrastructure.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="6ac1c62e-9cd4-4af6-a44b-81623acd924e"><sup class="FootNote_footnotesup__e73z_">1</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="6ac1c62e-9cd4-4af6-a44b-81623acd924e" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">For more information about assessing metrics throughout the life cycle of a project, see <em>What is sustainable infrastructure? A framework to guide sustainability across the project cycle,</em> Inter-American Development Bank, May 2018, publications.iadb.org.</span></span></span></a></span> The environmental component addresses aspects ranging from air quality and energy management to a project’s impact on biodiversity, waste, and water management. Although allocating GHG emissions across the construction ecosystem is not straightforward, we know that construction is directly or indirectly responsible for almost 40 percent of global CO₂ emissions from fuel combustion and 25 percent of GHG emissions overall (Exhibit 1).<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="54d8d496-803b-41a1-9fcc-980f60808282"><sup class="FootNote_footnotesup__e73z_">2</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="54d8d496-803b-41a1-9fcc-980f60808282" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Throughout this article, the unit of measurement for emissions is metric tons (1 metric ton = 2,205 pounds).</span></span></span></a></span></p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 1</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex1.svgz?cq=50&cpy=Center"/><img alt="Across the value chain, the construction ecosystem accounts for approximately 25 percent of global GHG emissions." src="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex1.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p>The construction ecosystem has a major impact on the environment through other channels as well, including the significant amount of waste generated (600.33 million US tons of construction waste in the United States alone in 2018)<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="5fbf11db-610a-426c-ad91-4a93a4f495ca"><sup class="FootNote_footnotesup__e73z_">3</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="5fbf11db-610a-426c-ad91-4a93a4f495ca" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">“Construction and Demolition Debris: Material-Specific Data,” Facts and Figures about Materials, Waste, and Recycling, United States Environmental Protection Agency, accessed January 2020, epa.gov.</span></span></span></a></span>, high water consumption (approximately 200 liters of water used for each cubic meter of concrete), and particulate matter (PM), or air pollution, in cities (construction is responsible for 14.5 percent of PM<sub>2.5</sub> in big cities).<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="df89346b-27e1-4ea8-afe8-201778384265"><sup class="FootNote_footnotesup__e73z_">4</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="df89346b-27e1-4ea8-afe8-201778384265" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">London Atmospheric Emissions Inventory (LAEI) 2013, Greater London Authority, updated April 2017, data.london.gov.uk.</span></span></span></a></span> However, in this article we focus on GHG emissions.</p> <p>Global GHG emissions have risen rapidly over the past 100 years, and the planet continues to warm.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="0e7ac258-2954-457d-84c0-1368bd46e567"><sup class="FootNote_footnotesup__e73z_">5</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="0e7ac258-2954-457d-84c0-1368bd46e567" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">For more on the rise of GHG emissions, see Valérie Masson-Delmotte et al., <em>Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty,</em> IPCC, 2018, ipcc.ch.</span></span></span></a></span> The effects of climate change are already apparent: major flooding events, extreme heat, and agricultural degradation are on the rise, resulting in <a href="/capabilities/sustainability/our-insights/earth-to-ceo-your-company-is-already-at-risk-from-climate-change">well-documented environmental consequences</a>. From a business perspective, infrastructure, supply chains, food systems, asset prices, land and labor productivity, and economic growth itself are increasingly at risk.</p> <h2>The construction ecosystem is driving global emissions</h2> <p>GHG emissions from the construction ecosystem are mainly driven by two components: raw-material processing for buildings and infrastructure (about 30 percent of total construction emissions per year, largely cement and steel) and buildings operations (about 70 percent) (Exhibit 2). Given typical asset lifetimes of 30 to 130 years, we cannot wait to replace products at the end of their life cycle if we are to meet climate-change-mitigation targets by 2050. With roughly 80 percent of the predicted building stock for 2050 already in existence today, there is a huge need—and opportunity—to retrofit existing assets.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 2</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex2.svgz?cq=50&cpy=Center"/><img alt="Building operations and raw-material processing are the largest GHG contributors along the construction value chain." src="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex2.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p><a href="/industries/chemicals/our-insights/laying-the-foundation-for-zero-carbon-cement">The contribution from raw materials comes primarily from energy-intensive cement production and through metals</a> (about 50 percent of global steel production is used for construction), which contributes almost <a href="/capabilities/sustainability/our-insights/reimagining-industrial-operations">7 percent of global GHG emissions</a>. The contribution from commercial and residential building operations is mainly driven by space and water heating within buildings, heat leakage due to poor insulation, and other energy usage such as lighting, air conditioning, and appliances.</p> <div data-module-category="" class="PullQuote_mck-c-pullquote__DbaQ5 mck-o-lg-center"><blockquote data-component="mdc-c-blockquote" class="PullQuote_mck-c-blockquote__6n21p PullQuote_mck-c-blockquote--hide-quotes__CpGpg mdc-c-blockquote mdc-c-blockquote--is-quotes___TozKo_2734c4f"><p>The contribution from raw materials comes primarily from metals (about 50 percent of global steel production is used for construction) and through energy-intensive cement production, which contributes almost 7 percent of global GHG emissions.</p></blockquote></div> <p>Design is the most important factor in determining GHG emissions over a building’s lifetime. By the time the construction process begins, the majority of decisions affecting the project’s GHG emissions are locked in. The ability to influence a building’s lifetime emissions is highest very early in a project and before construction has started.</p> <p>Fundamental design decisions—such as new construction versus upgrading, building size and shape, level of insulation, and floor-space flexibility—can have a significant impact on emissions for decades to come. </p> <p>If left unaddressed, the construction ecosystem’s carbon output is expected to grow over the next 30 years as we seek to meet the demands of an expanding population and increased urbanization. On a positive note, this opens opportunities to optimize new builds, while a simultaneous shift toward renewable energy will help to mitigate emissions. With power-system decarbonization leading to a reduction in emissions by 2050, the need to eliminate annual emissions remains significant for the construction and real estate ecosystem to meet the 2016 Paris Agreement’s 1.5-degree warming target.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="389e963c-c5f9-419c-8c5b-d0d0552cca7a"><sup class="FootNote_footnotesup__e73z_">6</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="389e963c-c5f9-419c-8c5b-d0d0552cca7a" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">The United Nations Framework Convention on Climate Change, or Paris Agreement, requires signatories to pursue efforts to limit the global average temperature increase to 1.5°C above preindustrial levels.</span></span></span></a></span></p> <p>Nevertheless, tackling emissions will be challenging. Providing incentives for players across the value chain to take joint action is a necessary part of this process. <a href="/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem">The construction ecosystem is in the midst of a transition that is reshaping all parts of the industry</a>. A further challenge is how to deploy smart technologies across millions of locations in an industry with the second-lowest level of <a href="/industries/technology-media-and-telecommunications/our-insights/digital-america-a-tale-of-the-haves-and-have-mores">digitalization </a>and relatively low levels of productivity growth.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="e4e09cf7-8be9-4658-8c18-7c594fe773dc"><sup class="FootNote_footnotesup__e73z_">7</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="e4e09cf7-8be9-4658-8c18-7c594fe773dc" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Cumulative real growth in the United States, percent, 1947–2010.</span></span></span></a></span></p> <h2>Focusing on specific decarbonization initiatives can be cost-effective</h2> <p>The scale of the problem is substantial, as are the challenges faced by the player in the ecosystem. But the good news is that there are clear actions each player can take to dramatically reduce its carbon footprint—and many of these actions will also deliver cost savings. However, a combined effort will be required across both existing and new building stock if the industry is to achieve its ultimate goal of net-zero emissions at an ecosystem level. To chart the decarbonization pathway of the construction industry, we have assessed a range of levers to decarbonization. Each lever is assessed for abatement potential, and for cost, on a net-present-value (NPV) basis, to assess the abatement cost in euros per ton of CO₂. For the European markets alone, we have modeled more than 1,000 business cases to establish the most cost-effective pathway to decarbonization.</p> <p>This assessment shows that it is possible to reach net-zero emissions for operating buildings at an average cost of €5 per ton of CO₂, contributing substantially to the overall net-zero pathway that can be achieved at net-zero cost by 2050 in Europe. </p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-disruptor1up mck-o-md-center mck-u-inline-module-border-top mck-u-inline-module-border-bottom mck-u-screen-only" data-layer-region="disruptor-1up"><div class="mdc-u-grid mdc-u-grid-gutter-md mdc-u-grid-col-lg-12 mdc-u-grid-col-md-12 "><div class="mdc-u-grid-col-md-span-12"><header data-component="mdc-c-header" class="mdc-c-header"><div class="mdc-c-header__block___i1Lg-_2734c4f"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f"><div>Would you like to learn more about our <a href="/industries/engineering-construction-and-building-materials/how-we-help-clients">Engineering, Construction & Building Materials Practice</a>?</div></h3></div></header><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f mck-c-disruptor1up__content Disruptor1Up_mck-c-disruptor1up__content--links__VV4lE mdc-u-grid-gutter-md"><a data-component="mdc-c-link" href="/industries/engineering-construction-and-building-materials/how-we-help-clients" class="mdc-c-link-cta___NBQVi_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Visit our Engineering, Construction & Building Materials page</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-link-arrow-right-icon"></span></a></div></div></div></div> <p>Average abatement costs for other sectors vary significantly: for example, the industry abatement cost averages €85 per ton abated, transport €–120 per ton abated and agriculture €–25 per ton abated. Given that the average building emits two tons of CO₂ per year, the average annual cost increase would be only €10 per dwelling per building per year—an increase to the average energy bill of approximately 1 percent. Moreover, even without the more expensive abatement levers, the heating would still experience 85 percent abatement.</p> <p>Taking a closer look at emissions from the operation of existing buildings, we see that within the European Union, 70 percent of energy consumption relates to heating. Two factors are important: the energy efficiency of the building (thermal insulation and heating-control systems) and the energy source used for heating (for example, using renewable electricity to drive heat pumps versus gas boilers). There are many cost-effective approaches to emissions abatement, with insulation and a move to solar thermal the most cost-effective (Exhibit 3). Switching to renewable technologies in heating accounts for 72 percent of emissions reductions, supporting the pathway to net-zero both for the building sector and for the <a href="/capabilities/sustainability/our-insights/how-the-european-union-could-achieve-net-zero-emissions-at-net-zero-cost">European Union</a> more broadly.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 3</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex3-tall-v2.svgz?cq=50&cpy=Center"/><img alt="Switching to solar thermal and medium insulation in existing stock is a no-regrets move to reduce emissions from heating." src="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex3-tall-v2.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p>One NPV-positive move would be to upgrade insulation of dwellings. Transitioning from low insulation (an Energy Performance Certificate [EPC] rating of F and G) to medium (an EPC rating of C, D, and E) is generally cost positive. This is primarily because insulation—which includes walls, roof, floor, and glazing with materials such as fiberglass, mineral wool, polystyrene, and glass—has a long life span. Over the course of 50 years, upgraded insulation can reduce energy demand by about 30 percent. In Europe, the majority of existing buildings are not well insulated: out of 245 million dwellings, around 135 million have a low level of insulation, and 85 million of these are heated with fossil fuels. The European Union estimates that 97 percent of buildings built before 2010 need renovation to comply with long-term strategic ambitions. Our calculations indicate that, to achieve these ambitions by 2050, current renovation rates need to more than double—up from today’s approximately 1.0 percent to about 2.5 percent.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="e526f5e3-60f0-49f5-89fa-34094fabe8e2"><sup class="FootNote_footnotesup__e73z_">8</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="e526f5e3-60f0-49f5-89fa-34094fabe8e2" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions: “A Renovation Wave for Europe – Greening our buildings, creating jobs, improving lives,” COM(2020) 662 final, European Commission, October 14, 2020, ec.europa.eu; “How the European Union could achieve net-zero emissions at net-zero cost,” December 3, 2020.</span></span></span></a></span> This highlights the fact that, while such action is NPV positive, it nevertheless involves huge complexity and remains a major undertaking.</p> <p>Significantly, the energy-demand reductions from increased levels of insulation contribute only around 20 percent of overall emissions reductions; the largest reductions are achieved by switching to renewable technologies for heating. Importantly, however, these technologies are enabled by improved insulation levels as they only operate efficiently in well-insulated buildings. The most significant shifts in heating systems include moving 40 percent of residential and commercial buildings to heat pumps by 2050 (versus 2 percent now), 33 percent to district heating (versus 12 percent now), 15 percent to biogas or hydrogen boilers (versus 0 percent now) and 10 percent to solar thermal as an add-on technology (versus 2 percent now).</p> <h2>Reducing the emissions impact of new builds</h2> <p>Turning to new building construction, we see that it is responsible for more than 2.5 gigatons of CO₂e globally (5 percent of total GHG emissions). Concrete and steel processing represents the largest share (60 percent) of embodied carbon because of the large quantities of each material incorporated in a typical structure and the energy-intensive production process.</p> <p>Reducing emissions for new builds requires a different approach than that for <a href="/industries/electric-power-and-natural-gas/our-insights/building-decarbonization-how-electric-heat-pumps-could-help-reduce-emissions-today-and-going-forward">decarbonizing building operations</a>. Regulations for new builds are currently tightening, requiring higher levels of insulation: for example, new buildings in the European Union are now subject to the Energy Performance of Buildings Directive. In addition, decarbonization of materials can be achieved through a combination of several main measures:</p> <ul> <li><em>Demand reduction and circularity.</em> Lowering demand for primary resources through design and process optimization (including reduced waste, improved building footprints, and limited overspecifications), and by increasing closed-loop circularity for materials and components (including increased usage of scrap material and reduced recycling-yield losses). Using generative design to create outcome-based designs that help frame and clarify how different materials and design choices can lower GHG emissions</li> <li><em>Optimizing construction and material.</em> Shifting commonly used materials and equipment to alternatives that are more energy efficient, including substitution by low-carbon materials, higher-performing materials, and electrification of heavy equipment. Pushing toward productization of projects, modularization, and off-site construction to reduce the overall footprint of the construction process</li> <li><em>Material decarbonization.</em> Reducing emissions during production of required materials, including increased production efficiencies, electrification of processing equipment, and technology advancements</li> </ul> <p>We have modeled a potential abatement pathway for materials and construction processes, taking as an example a European residential building (five stories, 500-square-meter footprint), to assess the optimal combination of the principal measures (Exhibit 4). This model was based on input from our global pool of sector experts and the latest scientific literature.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 4</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex4-tall-v2.svgz?cq=50&cpy=Center"/><img alt="The decarbonization pathway may require a rethink of basic principles and a combination of existing and alternative materials." src="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex4-tall-v2.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p>The pathway for this vision of net-zero carbon buildings at zero cost increase may require a rethinking of basic principles and a combination of existing and alternative materials. The optimal mix of these will vary for different buildings and locations. Analysis for the building used in this illustration (mainly based around well-known and more-established levers) suggests that most abatement potential comes from reducing upstream emissions in the material-production process (optimizing construction and materials, 40 percent). The remainder of the abatement potential comes from lowering demand, including primary resources and circularity. The pathway suggests that a share of these measures would bring cost savings to the industry.</p> <h2>Companies stand to benefit from tackling emissions</h2> <p>Capital markets are shifting toward ESG, with more and cheaper capital available for sustainable players. We expect this to be one driver of a rapid increase in demand for ESG-friendly buildings. Furthermore, consumers are becoming as aware of the emissions generated by their homes and workplaces as they are of the environmental impact of what they drive, how they travel, and what they eat.</p> <p>We believe that the decarbonization and sustainability focus will shift inexorably toward construction and real estate, following scrutiny of other industries in recent years. At the same time, the drive toward sustainability brings significant opportunities for value creation. Encouragingly, the construction and real estate sector recognizes this: according to a <a href="/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem">recent survey</a> of 400 global industry leaders, the vast majority (80 percent) consider sustainability to be the driver most likely to lead to a transformational industry shift over the next one to five years. We also see leading companies committing seriously to decarbonization; one global player has committed to a 50 percent reduction in GHG emissions by 2030 and to ensuring a carbon-neutral project portfolio by 2045.</p> <p>Companies can benefit from approaching ESG as a strategic opportunity versus the traditional view that it is simply a cost that is hard to pass on to other players in the value chain (for example, tenants or developers). As discussed, many carbon-abatement levers can be cost-effective. Within operations ESG could involve installing insulation and district heating in Europe or, in the context of construction of new stock, reducing demand for primary resources through design and process optimization and shifting from commonly used materials to more energy-efficient ones. To capitalize on the strategic opportunities, players should consider changes in value pools, respond to megatrends such as new technology and services with new business models, and boldly tap into the capital market.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-disruptor1up mck-o-md-center mck-u-inline-module-border-top mck-u-inline-module-border-bottom mck-u-screen-only" data-layer-region="disruptor-1up"><div class="mdc-u-grid mdc-u-grid-gutter-md mdc-u-grid-col-lg-12 mdc-u-grid-col-md-12 "><div class="mdc-u-grid-col-lg-span-4 mdc-u-grid-col-md-span-5 Disruptor1Up_mck-c-disruptor1up__image___2Gc4"><picture data-component="mdc-c-picture"><img alt="The next normal in construction" src="/~/media/mckinsey/business%20functions/operations/our%20insights/the%20next%20normal%20in%20construction/standard-next-normal-construction-1073724268.png?cq=50&mh=145&car=16:9&cpy=Center" loading="lazy"/></picture></div><div class="mdc-u-grid-col-lg-span-8 mdc-u-grid-col-md-span-7"><header data-component="mdc-c-header" class="mdc-c-header"><div class="mdc-c-header__block___i1Lg-_2734c4f"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f"><div>The next normal in construction: How disruption is reshaping the world’s largest ecosystem</div></h3></div></header><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f mck-c-disruptor1up__content Disruptor1Up_mck-c-disruptor1up__content--links__VV4lE mdc-u-grid-gutter-md"><a data-component="mdc-c-link" href="/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem" class="mdc-c-link-cta___NBQVi_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Read the article</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-link-arrow-right-icon"></span></a></div></div></div></div> <p>By contrast, a failure to act now could leave construction open to serious challenges from future entrants operating closer to market expectations, through increasingly stringent regulation that incentivizes low-carbon players and penalizes others, or because capital markets limit investments in companies that lack a serious commitment to decarbonization. New players entering the market can focus on the main trends disrupting an industry without having to undergo a transformational shift. This can translate into a significant advantage over more-established players.</p> <p>The smart-buildings segment is expected to grow at 10 to 13 percent CAGR until 2025; examples range from new materials and approaches to tackling waste sources to green-design solutions based on building-information modeling and IoT-based energy management.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="1b1780e0-3b95-4710-a0c6-cd497cfe5e54"><sup class="FootNote_footnotesup__e73z_">9</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="1b1780e0-3b95-4710-a0c6-cd497cfe5e54" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Global smart buildings market 2020-2024, Technavio, August 2020, technavio.com.</span></span></span></a></span> Equally, recent years have seen a significant increase in societal pressure on companies to reduce their environmental impact, and growing regulatory pressure puts businesses across the construction and real estate ecosystem at risk; building-material suppliers, for example, have the highest exposure among all industries to higher carbon prices in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA).<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="a55607c7-8010-4d32-95e6-5cad820fc2d2"><sup class="FootNote_footnotesup__e73z_">10</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="a55607c7-8010-4d32-95e6-5cad820fc2d2" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Andy Howard and Ovidiu Patrascu, “Climate change: Redefining the risks,” Schroders, September 8, 2017, schroders.com.</span></span></span></a></span> Regulators in more than 50 countries have already established or are planning a form of carbon taxation.</p> <h2>No single player in the ecosystem can tackle the emissions issue alone</h2> <p>The construction ecosystem is highly fragmented, with many steps along the product life cycle. Although each player in this highly complex ecosystem can make a difference and capture opportunities, collaborative efforts among various stakeholders are likely to yield the best results. We have explored the role several key players can contribute to this transformation; for example, developers can influence design and planning, while contractors can have an impact on construction of new buildings and upgrades to existing stock. Depending on the asset type, each stakeholder has an impact on emissions at multiple stages of the product life cycle; equally, large chunks of emissions are affected by multiple players (Exhibit 5).</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-md-center"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mdc-u-mb-3 GenericItem_mck-c-generic-item__sGwKL"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div class="mck-c-eyebrow mdc-u-ts-10"><span> 5</span></div></div></div><div class="mck-u-inline-module-border-top mck-u-inline-module-border-bottom"><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex5.svgz?cq=50&cpy=Center"/><img alt="Each player has an impact at a specific phase of the construction life cycle; major opportunities require collaborative action." src="/~/media/mckinsey/industries/engineering%20construction%20and%20building%20materials/call%20for%20action%20seizing%20the%20decarbonization%20opportunity%20in%20construction/svg-sustainability-construction-ex5.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div> <p>Moreover, the impacts of the emissions transition will be unevenly distributed, creating challenges for many individual companies and actors. Stakeholders must prepare for significant changes to policies and regulations, risk-sharing schemes (such as performance-based, energy-reduction contracts), alternative-financing models (for example, green mortgages), and digital innovations (for instance, blockchain-based platforms designed to allocate savings from energy-efficiency investments).</p> <p>As demand and regulatory pressures mount, the construction ecosystem needs to identify mechanisms to address these pressures. For example, engineering companies will need to optimize cost and ESG design based on lifetime cost (as opposed to upfront cost), and contractors will have to minimize waste, ensure recycling, and replace diesel-powered equipment.</p> <p>The construction industry is experiencing multiple disruptions, but the drive to sustainability is racing ahead. Just ten years ago, zero-emissions vehicles were only a concept; now they are a reality. Change is arriving quickly, and we are already seeing many modifications to new and existing projects. Accelerating this journey and addressing the challenge head-on will be key.</p></div><div class="container-placeholder"></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-xl"><section role="contentinfo" data-layer-region="article-about-authors" class="mdc-u-grid mdc-u-grid-col-md-12 AboutAuthor_mck-c-about-author__nRJzu"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center"></h5><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline mck-u-links-inline--secondary mdc-u-mt-5"><div><p><strong><a href="/our-people/jose-luis-blanco">Jose Luis Blanco</a></strong> is a partner in McKinsey’s Philadelphia office; <strong><a href="/our-people/hauke-engel">Hauke Engel</a></strong> is a partner in the Frankfurt office; <strong>Focko Imhorst</strong> is an associate partner in the London office; <strong><a href="/our-people/maria-joao-ribeirinho">Maria João Ribeirinho</a></strong> is a partner in the Madrid office; and <strong><a href="/our-people/erik-sjodin">Erik Sjödin</a></strong> is a partner in the Stockholm office.</p> <p>The authors wish to thank Demian Roelofs, Gernot Strube, Rory Sullivan, Meta van Veghe, and Wouter Vink for their contributions to this article.</p></div></div></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-screen-only"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-5 mdc-u-grid-col-lg-end-9"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center">Explore a career with us</h5><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-center___ar3mu_2734c4f"><a data-component="mdc-c-link" href="/careers/search-jobs" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--secondary___Boipq_2734c4f mdc-c-button--size-large___jwpUy_2734c4f" aria-label="Search Openings" data-layer-event-prefix="CTA Link" data-layer-action="click" data-layer-category="careers" data-layer-subcategory="search" data-layer-text="Search Openings"><span class="mdc-c-link__label___Pfqtd_2734c4f">Search Openings</span></a></div></div></section></div></main></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="StandalonePromo" class="RelatedArticle_mck-c-article-related__GGA76 mck-u-screen-only" data-layer-region="related-articles"><div class="mdc-o-container__wrapper is-wrapped mdc-u-spaced-mobile"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center">Related Articles</h5><div class="mdc-u-grid mdc-u-grid-col-md-3 RelatedArticle_items-container__s2uD0"><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/industries/automotive-and-assembly/our-insights/digging-out-forecasting-for-construction-oems-in-the-next-normal" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-diggi-0 { aspect-ratio: 16/9 }</style><img alt="Digging out: Demand forecasts for construction OEMs in the next normal" class="picture-uniqueKey-diggi-0" src="/~/media/mckinsey/industries/automotive%20and%20assembly/our%20insights/digging%20out%20forecasting%20for%20construction%20oems%20in%20the%20next%20normal/887465766-1536x1536.jpg?cq=50&mw=767&car=16:9&cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Article</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/industries/automotive-and-assembly/our-insights/digging-out-forecasting-for-construction-oems-in-the-next-normal" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>Digging out: Forecasting for construction OEMs in the next normal</div></a></h6></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-then-0 { aspect-ratio: 16/9 }</style><img alt="The next normal in construction" class="picture-uniqueKey-then-0" src="/~/media/mckinsey/business%20functions/operations/our%20insights/the%20next%20normal%20in%20construction/standard-next-normal-construction-1073724268.png?cq=50&mw=767&car=16:9&cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Article</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>The next normal in construction: How disruption is reshaping the world’s largest ecosystem</div></a></h6></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-lg Card_card__diA2r Card_hover-effect__RGb9b"><div class="Card_wrapper-image__8b4P6"><a data-component="mdc-c-link" href="/capabilities/operations/our-insights/the-next-normal-in-construction-material-distribution" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture" class="Card_wrapper-image__8b4P6"><style>.picture-uniqueKey-then-0 { aspect-ratio: 16/9 }</style><img alt="The next normal in construction material distribution" class="picture-uniqueKey-then-0" src="/~/media/mckinsey/business%20functions/operations/our%20insights/the%20next%20normal%20in%20construction%20material%20distribution/standard-next-normal-construction-materials-600148200.png?cq=50&mw=767&car=16:9&cpy=Center" loading="lazy"/></picture></a></div><div class="Card_wrapper-text__U6Y3k"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f Card_content-block__pF6Z1"><span>Article</span><h6 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-6"><a data-component="mdc-c-link" href="/capabilities/operations/our-insights/the-next-normal-in-construction-material-distribution" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link___lBbY1_2734c4f"><div>The next normal in construction material distribution</div></a></h6></div></div></div></div></div></div></div></main></div><script id="__NEXT_DATA__" type="application/json">{"props":{"pageProps":{"locale":"en","dictionary":{},"sitecoreContext":{"route":{"name":"Call for action Seizing the decarbonization opportunity in construction","displayName":"Call for action Seizing the decarbonization opportunity in construction","fields":null,"databaseName":"web","deviceId":"fe5d7fdf-89c0-4d99-9aa3-b5fbd009c9f3","itemId":"7108c6af-2a1e-47ec-89c2-93e075c47657","itemLanguage":"en","itemVersion":1,"layoutId":"ae753eb4-a035-40b4-83bf-4b4438df6742","templateId":"683910db-02ba-40ba-92e7-726c880160a9","templateName":"ArticleJSS","placeholders":{"jss-main":[{"uid":"232bb7e9-289f-492d-a916-2b6185e44a84","componentName":"ArticleTemplate","dataSource":"","fields":{"data":{"articleTemplate":{"title":{"jsonValue":{"value":"Call for action: Seizing the decarbonization opportunity in construction"}},"sEOTitle":{"value":"Seizing the decarbonization opportunity in construction"},"description":{"jsonValue":{"value":"As decarbonization initiatives gain momentum, construction players can benefit from this growing trend\u0026mdash;but only if they view ESG as a strategic opportunity and collaborate with other stakeholders in the ecosystem."}},"sEODescription":{"value":"As decarbonization initiatives gain momentum, construction players can benefit from this growing trend—as a strategic opportunity and collaboration with other stakeholders in the ecosystem."},"displayDate":{"jsonValue":{"value":"2021-07-14T00:00:00Z"}},"body":{"value":"[[Audio 1]]\n[[DownloadsSidebar]]\n\u003cp\u003e\u003cstrong\u003eAs one of the world\u0026rsquo;s\u003c/strong\u003e biggest economic ecosystems, the construction industry has a major part to play in achieving global sustainability goals. \u0026ldquo;Ecosystem\u0026rdquo; in this article refers to the full life cycle (design, materials manufacturing, construction, usage, and demolition) of all residential and commercial buildings and infrastructure. While the industry is generally not seen as a sustainability pioneer, the entire ecosystem looks set to evolve.\u003c/p\u003e\n[[MostPopularArticles 5]]\n\u003cp\u003eThe COVID-19 crisis will likely prove to be a significant factor in this, not least because it will accelerate change. In this context, it is critical that we now begin to integrate the thinking and planning required to foster much greater economic and environmental resiliency to combat environmental risks.\u003c/p\u003e\n[[Sidebar 1]]\n\u003cp\u003eThis is a view that is reflected by industry leaders. When we asked 100 senior construction executives what trends they expected to accelerate due to the COVID-19 crisis, 53 percent cited sustainability. Reasons could include increased corporate awareness and understanding, as well as growing pressure from investors and financiers. \u003ca href=\"/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem\"\u003eAdditionally, 10 percent said they had already increased investments in sustainability measures since the start of the crisis\u003c/a\u003e. Moreover, sustainability has rapidly become one of the most frequent topics that clients ask us about. An additional factor to consider is that if the lower-interest-rate environment persists and significant stimulus packages materialize, it could contribute to the deployment of new sustainable infrastructure, as well as adaptation and resilience infrastructure\u0026mdash;\u003ca href=\"/capabilities/sustainability/our-insights/addressing-climate-change-in-a-post-pandemic-world\"\u003einvestments that would support near-term job creation\u003c/a\u003e. Meanwhile, the need for global cooperation on this issue will likely become more apparent and more universally embraced.\u003c/p\u003e\n[[PullQuote 1]]\n\u003cp\u003eSupporting our clients\u0026rsquo; efforts to improve sustainability in construction is one of McKinsey\u0026rsquo;s core priorities. We are combining our global expertise across our Engineering, Construction \u0026amp; Building Materials; Sustainability; Capital Excellence; and Real Estate Practices to drive advances in this area. This article focuses on the case for change by exploring construction\u0026rsquo;s impact on greenhouse-gas (GHG) emissions in\nthe context of buildings, examining how the industry can decarbonize, and explaining how companies in the sector can benefit.\u003c/p\u003e\n\u003ch2\u003eMeasuring environmental impact\u003c/h2\u003e\n\u003cp\u003eEnvironmental, social, and governance (ESG) factors are the key measures of a business\u0026rsquo;s sustainability and societal impact within the construction ecosystem. Metrics can be assessed across the entire ecosystem and throughout the life cycle of buildings and infrastructure.[[Footnote 1]] The environmental component addresses aspects ranging from air quality and energy management to a project\u0026rsquo;s impact on biodiversity, waste, and water management. Although allocating GHG emissions across the construction ecosystem is not straightforward, we know that construction is directly or indirectly responsible for almost 40 percent of global CO₂ emissions from fuel combustion and 25 percent of GHG emissions overall (Exhibit 1).[[Footnote 2]]\u003c/p\u003e\n[[Exhibit 1]]\n\u003cp\u003eThe construction ecosystem has a major impact on the environment through other channels as well, including the significant amount of waste generated (600.33 million US tons of construction waste in\nthe United States alone in 2018)[[Footnote 3]], high water consumption (approximately 200 liters of water used for each cubic meter of concrete), and particulate matter (PM), or air pollution, in cities (construction is responsible for 14.5 percent of PM\u003csub\u003e2.5\u003c/sub\u003e in big cities).[[Footnote 4]] However, in this article we focus on GHG emissions.\u003c/p\u003e\n\u003cp\u003eGlobal GHG emissions have risen rapidly over the past 100 years, and the planet continues to warm.[[Footnote 5]] The effects of climate change are already apparent: major flooding events, extreme heat, and agricultural degradation are on the rise, resulting in \u003ca href=\"/capabilities/sustainability/our-insights/earth-to-ceo-your-company-is-already-at-risk-from-climate-change\"\u003ewell-documented environmental consequences\u003c/a\u003e. From a business perspective, infrastructure, supply chains, food systems, asset prices, land and labor productivity, and economic growth itself are increasingly at risk.\u003c/p\u003e\n\u003ch2\u003eThe construction ecosystem is driving global emissions\u003c/h2\u003e\n\u003cp\u003eGHG emissions from the construction ecosystem are mainly driven by two components: raw-material processing for buildings and infrastructure (about 30 percent of total construction emissions per year, largely cement and steel) and buildings operations (about 70 percent) (Exhibit 2). Given typical asset lifetimes of 30 to 130 years, we cannot wait to replace products at the end of their life cycle if we are to meet climate-change-mitigation targets by 2050. With roughly 80 percent of the predicted building stock for 2050 already in existence today, there is a huge need\u0026mdash;and opportunity\u0026mdash;to retrofit existing assets.\u003c/p\u003e\n[[Exhibit 2]]\n\u003cp\u003e\u003ca href=\"/industries/chemicals/our-insights/laying-the-foundation-for-zero-carbon-cement\"\u003eThe contribution from raw materials comes primarily from energy-intensive cement production and through metals\u003c/a\u003e (about 50 percent of global steel production is used for construction), which contributes almost \u003ca href=\"/capabilities/sustainability/our-insights/reimagining-industrial-operations\"\u003e7 percent of global GHG emissions\u003c/a\u003e. The contribution from commercial and residential building operations is mainly driven by space and water heating within buildings, heat leakage due to poor insulation, and other energy usage such as lighting, air conditioning, and appliances.\u003c/p\u003e\n[[PullQuote 2]]\n\u003cp\u003eDesign is the most important factor in determining GHG emissions over a building\u0026rsquo;s lifetime. By the time the construction process begins, the majority of decisions affecting the project\u0026rsquo;s GHG emissions are locked in. The ability to influence a building\u0026rsquo;s lifetime emissions is highest very early in a project and before construction has started.\u003c/p\u003e\n\u003cp\u003eFundamental design decisions\u0026mdash;such as new construction versus upgrading, building size and shape, level of insulation, and floor-space flexibility\u0026mdash;can have a significant impact on emissions for decades to come. \u003c/p\u003e\n\u003cp\u003eIf left unaddressed, the construction ecosystem\u0026rsquo;s carbon output is expected to grow over the next 30 years as we seek to meet the demands of an expanding population and increased urbanization. On a positive note, this opens opportunities to optimize new builds, while a simultaneous shift toward renewable energy will help to mitigate emissions. With power-system decarbonization leading to a reduction in emissions by 2050, the need to eliminate annual emissions remains significant for the construction and real estate ecosystem to meet the 2016 Paris Agreement\u0026rsquo;s 1.5-degree warming target.[[Footnote 6]]\u003c/p\u003e\n\u003cp\u003eNevertheless, tackling emissions will be challenging. Providing incentives for players across the value chain to take joint action is a necessary part of this process. \u003ca href=\"/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem\"\u003eThe construction ecosystem is in the\nmidst of a transition that is reshaping all parts of the industry\u003c/a\u003e. A further challenge is how to deploy smart technologies across millions of locations in an industry with the second-lowest level of \u003ca href=\"/industries/technology-media-and-telecommunications/our-insights/digital-america-a-tale-of-the-haves-and-have-mores\"\u003edigitalization \u003c/a\u003eand relatively low levels of productivity growth.[[Footnote 7]]\u003c/p\u003e\n\u003ch2\u003eFocusing on specific decarbonization initiatives can be cost-effective\u003c/h2\u003e\n\u003cp\u003eThe scale of the problem is substantial, as are the challenges faced by the player in the ecosystem. But the good news is that there are clear actions each player can take to dramatically reduce its carbon footprint\u0026mdash;and many of these actions will also deliver cost savings. However, a combined effort will be required across both existing and new building stock if the industry is to achieve its ultimate goal of net-zero emissions at an ecosystem level. To chart the decarbonization pathway of the construction industry, we have assessed a range of levers to decarbonization. Each lever is assessed for abatement potential, and for cost, on a net-present-value (NPV) basis, to assess the abatement cost in euros per ton of CO₂. For the European markets alone, we have modeled more than 1,000 business cases to establish the most cost-effective pathway to decarbonization.\u003c/p\u003e\n\u003cp\u003eThis assessment shows that it is possible to reach net-zero emissions for operating buildings at an average cost of \u0026euro;5 per ton of CO₂, contributing substantially to the overall net-zero pathway that can be achieved at net-zero cost by 2050 in Europe. \u003c/p\u003e\n[[Disruptor1UP dis1]]\n\u003cp\u003eAverage abatement costs for other sectors vary significantly: for example, the industry abatement cost averages \u0026euro;85 per ton abated, transport \u0026euro;\u0026ndash;120 per ton abated and agriculture \u0026euro;\u0026ndash;25 per ton abated. Given that the average building emits two tons of CO₂ per year, the average annual cost increase would be only \u0026euro;10 per dwelling per building per year\u0026mdash;an increase to the average energy bill of approximately 1 percent. Moreover, even without the more expensive abatement levers, the heating would still experience 85 percent abatement.\u003c/p\u003e\n\u003cp\u003eTaking a closer look at emissions from the operation of existing buildings, we see that within the European Union, 70 percent of energy consumption relates to heating. Two factors are important: the energy efficiency of the building (thermal insulation and heating-control systems) and the energy source used for heating (for example, using renewable electricity to drive heat pumps versus gas boilers). There are many cost-effective approaches to emissions abatement, with insulation and a move to solar thermal the most cost-effective (Exhibit 3). Switching to renewable technologies in heating accounts for 72 percent of emissions reductions, supporting the pathway to net-zero both for the building sector and for the \u003ca href=\"/capabilities/sustainability/our-insights/how-the-european-union-could-achieve-net-zero-emissions-at-net-zero-cost\"\u003eEuropean Union\u003c/a\u003e\u0026nbsp;more broadly.\u003c/p\u003e\n[[Exhibit 3]]\n\u003cp\u003eOne NPV-positive move would be to upgrade insulation of dwellings. Transitioning from low insulation (an Energy Performance Certificate [EPC] rating of F and G) to medium (an EPC rating of C, D, and E)\nis generally cost positive. This is primarily because insulation\u0026mdash;which includes walls, roof, floor, and glazing with materials such as fiberglass, mineral wool, polystyrene, and glass\u0026mdash;has a long life span. Over the course of 50 years, upgraded insulation can reduce energy demand by about 30 percent. In Europe, the majority of existing buildings are not well insulated: out of 245 million dwellings, around 135 million have a low level of insulation, and 85 million of these are heated with fossil fuels. The European Union estimates that 97 percent of buildings built before 2010 need renovation to comply with long-term strategic ambitions. Our calculations indicate that, to achieve these ambitions by 2050, current renovation rates need to more than double\u0026mdash;up from today\u0026rsquo;s approximately 1.0 percent to about 2.5 percent.[[Footnote 8]] This highlights the fact that, while such action is NPV positive, it nevertheless involves huge complexity and remains a major undertaking.\u003c/p\u003e\n\u003cp\u003eSignificantly, the energy-demand reductions from increased levels of insulation contribute only around 20 percent of overall emissions reductions; the largest reductions are achieved by switching to renewable technologies for heating. Importantly, however, these technologies are enabled by improved insulation levels as they only operate efficiently in well-insulated buildings. The most significant shifts in heating systems include moving 40 percent of residential and commercial buildings to heat pumps by 2050 (versus 2 percent now), 33 percent to district heating (versus 12 percent now), 15 percent to biogas or hydrogen boilers (versus 0 percent now) and 10 percent to solar thermal as an add-on technology (versus 2 percent now).\u003c/p\u003e\n\u003ch2\u003eReducing the emissions impact of new builds\u003c/h2\u003e\n\u003cp\u003eTurning to new building construction, we see that it is responsible for more than 2.5 gigatons of CO₂e globally (5 percent of total GHG emissions). Concrete and steel processing represents the largest share (60 percent) of embodied carbon because of the large quantities of each material incorporated in a typical structure and the energy-intensive production process.\u003c/p\u003e\n\u003cp\u003eReducing emissions for new builds requires a different approach than that for \u003ca href=\"/industries/electric-power-and-natural-gas/our-insights/building-decarbonization-how-electric-heat-pumps-could-help-reduce-emissions-today-and-going-forward\"\u003edecarbonizing building operations\u003c/a\u003e. Regulations for new builds are currently tightening, requiring higher levels of insulation: for example, new buildings in the European Union are now subject to the Energy Performance of Buildings Directive. In addition, decarbonization of materials can be achieved through a combination of several main measures:\u003c/p\u003e\n\u003cul\u003e\n \u003cli\u003e\u003cem\u003eDemand reduction and circularity.\u003c/em\u003e Lowering demand for primary resources through design and process optimization (including reduced waste, improved building footprints, and limited overspecifications), and by increasing closed-loop circularity for materials and components (including increased usage of scrap material and reduced recycling-yield losses). Using generative design to create outcome-based designs that help frame and clarify how different materials and design choices can lower GHG emissions\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eOptimizing construction and material.\u003c/em\u003e Shifting commonly used materials and equipment to alternatives that are more energy efficient, including substitution by low-carbon materials, higher-performing materials, and electrification of heavy equipment. Pushing toward productization of projects, modularization, and off-site construction to reduce the overall footprint of the construction process\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eMaterial decarbonization.\u003c/em\u003e Reducing emissions during production of required materials, including increased production efficiencies, electrification of processing equipment, and technology advancements\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eWe have modeled a potential abatement pathway for materials and construction processes, taking as an example a European residential building (five stories, 500-square-meter footprint), to assess the optimal combination of the principal measures (Exhibit 4). This model was based on input from our global pool of sector experts and the latest scientific literature.\u003c/p\u003e\n[[Exhibit 4]]\n\u003cp\u003eThe pathway for this vision of net-zero carbon buildings at zero cost increase may require a rethinking of basic principles and a combination of existing and alternative materials. The optimal mix of these will vary for different buildings and locations. Analysis for the building used in this illustration (mainly based around well-known and more-established levers) suggests that most abatement potential comes from reducing upstream emissions in the material-production process (optimizing construction and materials, 40 percent). The remainder of the abatement potential comes from lowering demand, including primary resources and circularity. The pathway suggests that a share of these measures would bring cost savings to the industry.\u003c/p\u003e\n\u003ch2\u003eCompanies stand to benefit from tackling emissions\u003c/h2\u003e\n\u003cp\u003eCapital markets are shifting toward ESG, with more and cheaper capital available for sustainable players. We expect this to be one driver of a rapid increase in demand for ESG-friendly buildings. Furthermore, consumers are becoming as aware of the emissions generated by their homes and workplaces as they are of the environmental impact of what they drive, how they travel, and what they eat.\u003c/p\u003e\n\u003cp\u003eWe believe that the decarbonization and sustainability focus will shift inexorably toward construction and real estate, following scrutiny of other industries in recent years. At the same time, the drive toward sustainability brings significant opportunities for value creation. Encouragingly, the construction and real estate sector recognizes this: according to a \u003ca href=\"/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem\"\u003erecent survey\u003c/a\u003e\u0026nbsp;of 400 global industry leaders, the vast majority (80 percent) consider sustainability to be the driver most likely to lead to a transformational industry shift over the next one to five years. We also see leading companies committing seriously to decarbonization; one global player has committed to a 50 percent reduction in GHG emissions by 2030 and to ensuring a carbon-neutral project portfolio by 2045.\u003c/p\u003e\n\u003cp\u003eCompanies can benefit from approaching ESG as a strategic opportunity versus the traditional view that it is simply a cost that is hard to pass on to other players in the value chain (for example, tenants or developers). As discussed, many carbon-abatement levers can be cost-effective. Within operations ESG could involve installing insulation and district heating in Europe or, in the context of construction of new stock, reducing demand for primary resources through design and process optimization and shifting from commonly used materials to more energy-efficient ones. To capitalize on the strategic opportunities, players should consider changes in value pools, respond to megatrends such as new technology and services with new business models, and boldly tap into the capital market.\u003c/p\u003e\n[[Disruptor1UP dis2]]\n\u003cp\u003eBy contrast, a failure to act now could leave construction open to serious challenges from future entrants operating closer to market expectations, through increasingly stringent regulation that incentivizes low-carbon players and penalizes others, or because capital markets limit investments in companies that lack a serious commitment to decarbonization. New players entering the market can focus on the main trends disrupting an industry without having to undergo a transformational shift. This can translate into a significant advantage over more-established players.\u003c/p\u003e\n\u003cp\u003eThe smart-buildings segment is expected to grow at 10 to 13 percent CAGR until 2025; examples range from new materials and approaches to tackling waste sources to green-design solutions based on building-information modeling and IoT-based energy management.[[Footnote 9]] Equally, recent years have seen a significant increase in societal pressure on companies to reduce their environmental impact, and growing regulatory pressure puts businesses across the construction and real estate ecosystem at risk; building-material suppliers, for example, have the highest exposure among all industries to higher carbon prices in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA).[[Footnote 10]] Regulators in more than 50 countries have already established or are planning a form of carbon taxation.\u003c/p\u003e\n\u003ch2\u003eNo single player in the ecosystem can tackle the emissions issue alone\u003c/h2\u003e\n\u003cp\u003eThe construction ecosystem is highly fragmented, with many steps along the product life cycle. Although each player in this highly complex ecosystem can make a difference and capture opportunities, collaborative efforts among various stakeholders are likely to yield the best results. We have explored the role several key players can contribute to this transformation; for example, developers can influence design and planning, while contractors can have an impact on construction of new buildings and upgrades to existing stock. Depending on the asset type, each stakeholder has an impact on emissions at multiple stages of the product life cycle; equally, large chunks of emissions are affected by multiple players (Exhibit 5).\u003c/p\u003e\n[[Exhibit 5]]\n\u003cp\u003eMoreover, the impacts of the emissions transition will be unevenly distributed, creating challenges for many individual companies and actors. Stakeholders must prepare for significant changes to policies\nand regulations, risk-sharing schemes (such as performance-based, energy-reduction contracts), alternative-financing models (for example, green mortgages), and digital innovations (for instance, blockchain-based platforms designed to allocate savings from energy-efficiency investments).\u003c/p\u003e\n\u003cp\u003eAs demand and regulatory pressures mount, the construction ecosystem needs to identify mechanisms to address these pressures. For example, engineering companies will need to optimize cost and ESG design based on lifetime cost (as opposed to upfront cost), and contractors will have to minimize waste, ensure recycling, and replace diesel-powered equipment.\u003c/p\u003e\n\u003cp\u003eThe construction industry is experiencing multiple disruptions, but the drive to sustainability is racing ahead. Just ten years ago, zero-emissions vehicles were only a concept; now they are a reality. Change is arriving quickly, and we are already seeing many modifications to new and existing projects. Accelerating this journey and addressing the challenge head-on will be key.\u003c/p\u003e"},"isFullScreenInteractive":{"boolValue":false},"hideStickySocialShareBar":{"boolValue":false},"desktopID":{"value":""},"mobileID":{"value":""},"desktopURL":{"value":""},"mobileURL":{"value":""},"desktopPaddingPercentage":{"value":""},"mobilePaddingPercentage":{"value":""},"desktopOverrideHeight":{"value":""},"mobileOverrideHeight":{"value":""},"cerosOembedURL":{"value":""},"cerosRenderMode":{"targetItem":null},"cerosBackgroundColor":{"targetItem":null},"hideByLine":{"boolValue":false},"tableOfContentsTitle":{"value":"TABLE OF CONTENTS"},"accessStatus":{"targetItem":{"key":{"value":"RegisteredUsers"},"value":{"value":"Registered Users"}}},"articleType":{"targetItem":{"displayName":"Article"}},"hasSpecialReport":{"boolValue":false},"contentType":{"targetItem":{"displayName":"Article"}},"sourcePublication":{"targetItem":null},"externalPublication":{"value":""},"mobileReady":{"boolValue":true},"forClientsOnly":{"boolValue":false},"excludeFromClientLink":{"boolValue":false},"originalPublishDate":{"jsonValue":{"value":"2021-07-14T10:00:00Z"}},"footnotes":{"value":"\u003col\u003e\n \u003cli\u003eFor more information about assessing metrics throughout the life cycle of a project, see \u003cem\u003eWhat is sustainable infrastructure? A framework to guide sustainability across the project cycle,\u003c/em\u003e Inter-American Development Bank, May 2018, publications.iadb.org.\u003c/li\u003e\n \u003cli\u003eThroughout this article, the unit of measurement for emissions is metric tons (1 metric ton = 2,205 pounds).\u003c/li\u003e\n \u003cli\u003e\u0026ldquo;Construction and Demolition Debris: Material-Specific Data,\u0026rdquo; Facts and Figures about Materials, Waste, and Recycling, United States Environmental Protection Agency, accessed January 2020, epa.gov.\u003c/li\u003e\n \u003cli\u003eLondon Atmospheric Emissions Inventory (LAEI) 2013, Greater London Authority, updated April 2017, data.london.gov.uk.\u003c/li\u003e\n \u003cli\u003eFor more on the rise of GHG emissions, see Val\u0026eacute;rie Masson-Delmotte et al., \u003cem\u003eGlobal Warming of 1.5\u0026deg;C. An IPCC Special Report on the impacts of global warming of 1.5\u0026deg;C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty,\u003c/em\u003e IPCC, 2018, ipcc.ch.\u003c/li\u003e\n \u003cli\u003eThe United Nations Framework Convention on Climate Change, or Paris Agreement, requires signatories to pursue efforts to limit the global average temperature increase to 1.5\u0026deg;C above preindustrial levels.\u003c/li\u003e\n \u003cli\u003eCumulative real growth in the United States, percent, 1947\u0026ndash;2010.\u003c/li\u003e\n \u003cli\u003eCommunication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions: \u0026ldquo;A Renovation Wave for Europe \u0026ndash; Greening our buildings, creating jobs, improving lives,\u0026rdquo; COM(2020) 662 final, European Commission, October 14, 2020, ec.europa.eu; \u0026ldquo;How the European Union could achieve net-zero emissions at net-zero cost,\u0026rdquo; December 3, 2020.\u003c/li\u003e\n \u003cli\u003eGlobal smart buildings market 2020-2024, Technavio, August 2020, technavio.com.\u003c/li\u003e\n \u003cli\u003eAndy Howard and Ovidiu Patrascu, \u0026ldquo;Climate change: Redefining the risks,\u0026rdquo; Schroders, September 8, 2017, schroders.com.\u003c/li\u003e\n\u003c/ol\u003e"},"contributoryPractice":{"targetItems":[{"displayName":"Engineering, Construction \u0026 Building Materials"}]},"aboutTheAuthors":{"value":"\u003cp\u003e\u003cstrong\u003e\u003ca href=\"/our-people/jose-luis-blanco\"\u003eJose Luis Blanco\u003c/a\u003e\u003c/strong\u003e is a partner in McKinsey\u0026rsquo;s Philadelphia office; \u003cstrong\u003e\u003ca href=\"/our-people/hauke-engel\"\u003eHauke Engel\u003c/a\u003e\u003c/strong\u003e\u0026nbsp;is a partner in the Frankfurt office; \u003cstrong\u003eFocko Imhorst\u003c/strong\u003e is an associate partner in the London office; \u003cstrong\u003e\u003ca href=\"/our-people/maria-joao-ribeirinho\"\u003eMaria Jo\u0026atilde;o Ribeirinho\u003c/a\u003e\u003c/strong\u003e is a partner in the Madrid office; and \u003cstrong\u003e\u003ca href=\"/our-people/erik-sjodin\"\u003eErik Sj\u0026ouml;din\u003c/a\u003e\u003c/strong\u003e is a partner in the Stockholm office.\u003c/p\u003e\n\u003cp\u003eThe authors wish to thank Demian Roelofs, Gernot Strube, Rory Sullivan, Meta van Veghe, and Wouter Vink for their contributions to this article.\u003c/p\u003e"},"authors":{"targetItems":[]},"nonPartnerAuthors":{"targetItems":[]},"interactiveToUse":{"targetItem":null},"enableArticleComponents":{"boolValue":false},"relatedArticles":{"targetItems":[{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Digging out: Forecasting for construction OEMs in the next normal"},"url":{"path":"/industries/automotive-and-assembly/our-insights/digging-out-forecasting-for-construction-oems-in-the-next-normal"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"As the COVID-19 pandemic accelerates transformative trends within the construction-equipment industry, companies must rethink their traditional strategies."},"standardImage":{"src":"/~/media/mckinsey/industries/automotive and assembly/our insights/digging out forecasting for construction oems in the next normal/887465766-1536x1536.jpg","alt":"Digging out: Demand forecasts for construction OEMs in the next normal"},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"The next normal in construction: How disruption is reshaping the world\u0026rsquo;s largest ecosystem"},"url":{"path":"/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"The COVID-19 crisis looks set to accelerate an overdue transformation of the world\u0026rsquo;s largest ecosystem. We expect nine shifts to radically change the construction value chain, and offer a blueprint for the next normal ahead."},"standardImage":{"src":"/~/media/mckinsey/business functions/operations/our insights/the next normal in construction/standard-next-normal-construction-1073724268.png","alt":"The next normal in construction"},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"The next normal in construction material distribution"},"url":{"path":"/capabilities/operations/our-insights/the-next-normal-in-construction-material-distribution"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"How disruption is reshaping distribution and logistics in the world\u0026rsquo;s largest ecosystem."},"standardImage":{"src":"/~/media/mckinsey/business functions/operations/our insights/the next normal in construction material distribution/standard-next-normal-construction-materials-600148200.png","alt":"The next normal in construction material distribution"},"heroImage":null,"thumbnailImage":null}]},"useEnhancedAuthors":{"boolValue":false},"acknowledgements":{"value":""},"showSocialShareFooter":{"boolValue":false},"template":{"id":"683910db-02ba-40ba-92e7-726c880160a9"},"hideFromSearchEngines":{"boolValue":false},"heroFiftyFiftyBackground":{"targetItem":null},"backgroundColor":{"targetItem":null},"gradientDirection":{"targetItem":{"key":{"value":"Bottom Right"},"value":{"value":"bottom-right"}}},"hideStickySubscriptionBar":{"value":false},"enableRegWall":{"boolValue":false},"timer":{"value":"8"},"regWallHeading":{"value":""},"showGoToHomeLink":{"boolValue":false},"regWallDescription":{"value":""},"isInsightsStorePage":{"boolValue":false},"enableRatingsForArticleBody":{"boolValue":false},"enableRatingsForMostPopular":{"boolValue":false},"selectedModalSubscriptions":{"targetItems":[]},"link1":{"queryString":"","className":"","anchor":"","linkType":"internal","url":"","text":"","targetItem":null},"link2":{"queryString":"","className":"","anchor":"","linkType":"internal","url":"","text":"","targetItem":null},"link3":{"queryString":"","className":"","anchor":"","linkType":"internal","url":"","text":"","targetItem":null},"link4":{"queryString":"","className":"","anchor":"","linkType":"internal","url":"","text":"","targetItem":null},"link5":{"queryString":"","className":"","anchor":"","linkType":"internal","url":"","text":"","targetItem":null},"fullReportPDF":{"name":"Full Report PDF","src":null,"displayName":null,"title":null,"keywords":null,"description":null,"extension":null,"mimeType":null,"size":null,"pageCount":null,"thumbnailImageSrc":""},"fullReportPDFDisplayName":{"value":""},"appendixPDF":{"name":"Appendix PDF","src":null,"displayName":null,"title":null,"keywords":null,"description":null,"extension":null,"mimeType":null,"size":null,"pageCount":null,"thumbnailImageSrc":""},"appendixPDFDisplayName":{"value":""},"articlePDF":{"name":"Article PDF","src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/call-for-action-seizing-the-decarbonization-opportunity-in-construction-vf.pdf","displayName":"Call-for-action-Seizing-the-decarbonization-opportunity-in-construction-vF","title":"Call for action: Seizing the decarbonization opportunity in construction","keywords":"","description":"","extension":"pdf","mimeType":"application/pdf","size":1155054,"pageCount":"12","thumbnailImageSrc":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/call-for-action-seizing-the-decarbonization-opportunity-in-construction-vf_thumbnail.jpeg"},"briefingNotePDF":{"name":"Briefing Note PDF","src":null,"displayName":null,"title":null,"keywords":null,"description":null,"extension":null,"mimeType":null,"size":null,"pageCount":null,"thumbnailImageSrc":""},"discussionPapersPDF":{"name":"Discussion Papers PDF","src":null,"displayName":null,"title":null,"keywords":null,"description":null,"extension":null,"mimeType":null,"size":null,"pageCount":null,"thumbnailImageSrc":""},"executiveSummaryPDF":{"name":"Executive Summary PDF","src":null,"displayName":null,"title":null,"keywords":null,"description":null,"extension":null,"mimeType":null,"size":null,"pageCount":null,"thumbnailImageSrc":""},"executiveSummaryPDFDisplayName":{"value":""},"researchPreviewPDF":{"name":"Research Preview PDF","src":null,"displayName":null,"title":null,"keywords":null,"description":null,"extension":null,"mimeType":null,"size":null,"pageCount":null,"thumbnailImageSrc":""},"heroImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/call-to-action-1536x864.jpg","alt":"Call for action: Seizing the decarbonization opportunity in construction"},"standardImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/call-to-action-1536x1536.jpg","alt":"Call for action: Seizing the decarbonization opportunity in construction"},"heroImageTopOffset":{"value":""},"headerOverlayOpacity":{"targetItem":null},"heroType":{"targetItem":{"displayName":"Existing"}},"photoOverlayOpacity":{"targetItem":null},"hideHero":{"boolValue":false},"renderStackedHeroLayoutForMobile":{"boolValue":false},"articleHeroVideoId":{"value":""},"podcastHeroOmnyAudioID":{"value":""},"heroBespokeInteractiveID":{"value":""},"bespokeHeroRenderMode":{"targetItem":null},"audio":{"results":[{"id":"F294A75F3A3D48EBA9F790BB9E047202","omnyPlayerAudioURL":{"value":""},"iTunesURL":{"value":""},"soundcloudAudioFile":{"value":"1087800241"},"displayNumber":{"value":""},"headline":{"jsonValue":{"value":""}},"mediaEyebrow":{"jsonValue":{"value":""}},"description":{"jsonValue":{"value":""}},"libraryAudioFile":{"src":null},"renderMode":{"targetItem":{"key":{"value":"Center"},"value":{"value":"small-span-center"}}},"hideMediaEyebrow":{"boolValue":true},"mediaID":{"value":"1"},"template":{"name":"Audio"}}]},"disruptor1up":{"results":[{"title":{"value":"Would you like to learn more about our \u003ca href=\"/industries/engineering-construction-and-building-materials/how-we-help-clients\"\u003eEngineering, Construction \u0026amp; Building Materials Practice\u003c/a\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"LinkType":"internal","Title":"","Text":"Visit our Engineering, Construction \u0026 Building Materials page","Url":"/industries/engineering-construction-and-building-materials/how-we-help-clients","Target":"","CssClass":"","QueryString":"","Anchor":"","LinkTitle":"How We Help Clients"}]}},"mediaID":{"value":"dis1"},"template":{"name":"Disruptor 1Up"}},{"title":{"value":"The next normal in construction: How disruption is reshaping the world\u0026rsquo;s largest ecosystem"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/business functions/operations/our insights/the next normal in construction/standard-next-normal-construction-1073724268.png","alt":"The next normal in construction"},"moreLinks":{"jsonValue":{"value":[{"LinkType":"internal","Title":"","Text":"Read the article","Url":"/capabilities/operations/our-insights/the-next-normal-in-construction-how-disruption-is-reshaping-the-worlds-largest-ecosystem","Target":"","CssClass":"","QueryString":"","Anchor":"","LinkTitle":"The next normal in construction: How disruption is reshaping the world\u0026rsquo;s largest ecosystem"}]}},"mediaID":{"value":"dis2"},"template":{"name":"Disruptor 1Up"}},{"mediaID":{"value":"cop"},"title":{"value":"Explore COP29 with McKinsey"},"description":{"value":"Join our series of dynamic virtual events during COP29. Discover new research, practical strategies, and collaborations across sectors to move climate action beyond why to how."},"image":{"src":"/~/media/mckinsey/business functions/sustainability/how we help clients/cop/cop29/cop_29_thumb.jpg","alt":"McKinsey at COP29"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Register","Title":"","Url":"https://mckinsey.cventevents.com/Q2MVE1?rt=RrQJ1iBSfEiqSK7N9VAGCw\u0026RefId=cop"}]}}},{"mediaID":{"value":"attheedge"},"title":{"value":"Subscribe to the \u003cem\u003eAt the Edge\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/at-the-edge/id1612870236"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3SnUcezwM20nKnzqvUl6iF"}]}}},{"mediaID":{"value":"authortalks"},"title":{"value":"Visit \u003cem\u003e\u003ca href=\"/featured-insights/mckinsey-on-books/author-talks\"\u003eAuthor Talks\u003c/a\u003e\u003c/em\u003e to see the full series."},"description":{"value":""},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey books/author talks/authortalks_1536x1536_v1.png","alt":"Author Talks"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/featured-insights/mckinsey-on-books/author-talks"}]}}},{"mediaID":{"value":"COVID"},"title":{"value":"Explore McKinsey’s ongoing coverage of the pandemic"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/business functions/risk/our insights/covid 19 implications for business/implications-briefing-note-4-standard-1536x1536.jpg","alt":"COVID-19: Implications for business"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Read more about the business impact of coronavirus and how organizations can respond","Title":"","Url":"/featured-insights/coronavirus-leading-through-the-crisis"}]}}},{"mediaID":{"value":"CE"},"title":{"value":"Customer experience"},"description":{"value":"More insight into creating competitive advantage by putting customers first and managing their journeys."},"image":{"src":"/~/media/mckinsey/industries/public and social sector/our insights/customer experience/customer-experience_22934010_1536x864.jpg","alt":"Customer experience"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":""}]}}},{"mediaID":{"value":"driversofdisruption"},"title":{"value":"Want to subscribe to \u003ca href=\"/features/mckinsey-center-for-future-mobility/our-insights/drivers-of-disruption\"\u003e\u003cem\u003eDrivers of Disruption\u003c/em\u003e\u003c/a\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/drivers-of-disruption/id1687257324"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5fWXzWmVKacc5I7u9CQsah?si=KQ-wUOSyQlqcnfexExiH9Q\u0026nd=1"}]}}},{"mediaID":{"value":"JOL"},"title":{"value":"The Journey of Leadership"},"description":{"value":"\u003cstrong\u003eHow CEOs Learn to Lead from the Inside Out\u003c/strong\u003e\u003cbr /\u003e\nBy \u003ca href=\"/our-people/dana-maor\"\u003eDana Maor\u003c/a\u003e, \u003ca href=\"https://www.linkedin.com/in/hanswernerkaas\"\u003eHans-Werner Kaas\u003c/a\u003e, \u003ca href=\"/our-people/kurt-strovink\"\u003eKurt Strovink\u003c/a\u003e, and \u003ca href=\"/our-people/ramesh-srinivasan\"\u003eRamesh Srinivasan\u003c/a\u003e"},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey books/journey of leadership/journey-of-leadership-book-cover-1536x1536.jpg","alt":"The Journey of Leadership book cover"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/featured-insights/mckinsey-on-books/journey-of-leadership"}]}}},{"mediaID":{"value":"surveys"},"title":{"value":"McKinsey\u0026rsquo;s original survey research"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey global surveys/mck-global-survey-landing-1284442931-thumb-1536x1536.jpg","alt":"McKinsey Global Surveys"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Read more","Title":"","Url":"/featured-insights/mckinsey-global-surveys"}]}}},{"mediaID":{"value":"healthcarepodcast"},"title":{"value":"Want to subscribe to \u003cem\u003eMcKinsey on Healthcare\u003c/em\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-healthcare/id1469979748"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3y1AgAilV4E5Jz0x4wD9O2?si=mLCTUQ2ORTS_LC5gW_htlA\u0026dl_branch=1"}]}}},{"mediaID":{"value":"myleadershipjourney"},"title":{"value":"My Leadership Journey"},"description":{"value":"A series of conversations with leaders about the people and experiences that shaped them"},"image":{"src":"/~/media/mckinsey/business functions/people and organizational performance/our insights/my leadership journey/my leadership journey collection page_131575496_thumb_1536x1536.jpg","alt":"My Leadership Journey"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/capabilities/people-and-organizational-performance/our-insights/my-leadership-journey"}]}}},{"mediaID":{"value":"lessonsfromleaders"},"title":{"value":"State of Organizations: Lessons from leaders"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/business functions/people and organizational performance/our insights/state of org lessons from leaders/soo-chapter-2-872507320-standard-1536x1536.jpg","alt":"\"\""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Explore more interviews","Title":"","Url":"/capabilities/people-and-organizational-performance/our-insights/lessons-from-leaders"}]}}},{"mediaID":{"value":"stateoforg"},"title":{"value":"The State of Organizations 2023"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Report overview","Title":"","Url":"/capabilities/people-and-organizational-performance/our-insights/the-state-of-organizations-2023"}]}}},{"mediaID":{"value":"titaniumeconomy"},"title":{"value":"The Titanium Economy"},"description":{"value":"How Industrial Technology Can Create a Better, Faster, Stronger America\u003cbr /\u003e\nBy \u003ca href=\"/our-people/asutosh-padhi\"\u003eAsutosh Padhi\u003c/a\u003e, Gaurav Batra, and \u003ca href=\"https://fernweh.com/nick-santhanam/\"\u003eNick Santhanam\u003c/a\u003e"},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey books/the titanium economy/titanium_3d-1536x1536-hero-trans.png","alt":"The Titanium Economy Book cover"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/featured-insights/mckinsey-on-books/the-titanium-economy"}]}}},{"mediaID":{"value":"GII"},"title":{"value":"Global Infrastructure Initiative"},"description":{"value":"Convening global leaders in infrastructure and capital projects in pursuit of new solutions"},"image":{"src":"/~/media/mckinsey/business functions/operations/our insights/the global infrastructure initiative/jpg-cpi-improving-construction-productivity-1536x864.jpg","alt":"Improving construction productivity"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Learn more","Title":"","Url":"http://www.globalinfrastructureinitiative.com/"}]}}},{"mediaID":{"value":"FOApodcast"},"title":{"value":"Subscribe to \u003ca href=\"/featured-insights/future-of-asia/future-of-asia-podcasts\"\u003e\u003cem\u003eFuture of Asia Podcasts\u003c/em\u003e\u003c/a\u003e"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/future-of-asia/id1480316959"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/2CZX4AR2DT4hQCFKJG0cCv?si=B20tkrOmQYymuCUhKCQOwA"}]}}},{"mediaID":{"value":"logisticsdisruptors"},"title":{"value":"Logistics Disruptors"},"description":{"value":"Meet the companies shaping how goods will move tomorrow."},"image":{"src":"/~/media/mckinsey/industries/travel logistics and infrastructure/our insights/logistics disruptors/tli-logistics-disruptors-1536x1536.jpeg","alt":"illustration autonomous truck driving off into the future"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/industries/travel-logistics-and-infrastructure/our-insights/logistics-disruptors"}]}}},{"mediaID":{"value":"mckinseyexplainers"},"title":{"value":"Looking for direct answers to other complex questions?"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey explainers/mckinseyexplainers-flat-thumb-1536x1536.jpg","alt":"Circular, white maze filled with white semicircles."},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Explore the full McKinsey Explainers series","Title":"","Url":"/featured-insights/mckinsey-explainers"}]}}},{"mediaID":{"value":"livesandlegacies"},"title":{"value":"\u003cem\u003e\u003ca href=\"/featured-insights/mckinsey-on-lives-and-legacies\"\u003eMcKinsey on Lives \u0026amp; Legacies\u003c/a\u003e\u003c/em\u003e"},"description":{"value":"Highlighting the lasting impact of leaders and executives"},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey on lives and legacies/lives-and-legacies-landing-page-thumb-1536x1536.jpg","alt":"McKinsey on Lives \u0026 Legacies"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Explore previous obituaries","Title":"","Url":"/featured-insights/mckinsey-on-lives-and-legacies"}]}}},{"mediaID":{"value":"Strategy"},"title":{"value":"Strategy in a digital age"},"description":{"value":"Our series on developing corporate and business-unit strategies in a digitally disrupted world."},"image":{"src":"/~/media/mckinsey/business functions/mckinsey digital/our insights/strategy in a digital age/digital-strategy_1536x864_flexpromoimage.jpg","alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"View the collection","Title":"","Url":"/featured-insights/strategy-in-a-digital-age"}]}}},{"mediaID":{"value":"great"},"title":{"value":"The great re-make: Manufacturing for modern times"},"description":{"value":"This 21-article compendium gives practical insights for manufacturing leaders looking to keep a step ahead of today\u0026rsquo;s disruptions."},"image":{"src":"/~/media/mckinsey/business functions/operations/our insights/the great remake manufacturing for modern times/jpg-ops-dm-compendium-cover-1536x864.jpg","alt":"The great re-make: Manufacturing for modern times"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"View the collection","Title":"","Url":"/capabilities/operations/our-insights/the-great-re-make-manufacturing-for-modern-times-compendium"}]}}},{"mediaID":{"value":"futureofamerica"},"title":{"value":"Subscribe to the \u003cem\u003eFuture of America\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/future-of-america/id1616517376"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/0FpeyjojJTKf2hVtQ3otah"}]}}},{"mediaID":{"value":"governmentpodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey on Government\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-government/id1573645359"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/61XsO4B2ersroMft8t3KSq"}]}}},{"mediaID":{"value":"podcast"},"title":{"value":"Want to subscribe to the McKinsey Podcast?\n"},"description":{"value":"\u003cdiv class=\"cta-container -align-horizontal\"\u003e\n \u003ca href=\"#\" class=\"btn btn-fill\"\u003eGoogle Play\u003c/a\u003e\n \u003ca href=\"#\" class=\"btn btn-fill\"\u003eiTunes\u003c/a\u003e\n \u003ca href=\"#\" class=\"btn btn-fill\"\u003eStitcher\u003c/a\u003e\n \u003ca href=\"#\" class=\"btn mck-rss-icon\"\u003eRSS\u003c/a\u003e\n\u003c/div\u003e"},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[]}}},{"mediaID":{"value":"operationspodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey Talks Operations\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-talks-operations/id1598128813"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/7LYQS2fxAoBmC3LgFNJbi8"}]}}},{"mediaID":{"value":"energyinsights"},"title":{"value":"Speak to an expert about our upstream capabilities"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/industries/oil and gas/how we help clients/energy insights/newsletter-signup-promo-bar-1536x768.jpg","alt":"EI newsletter sign up"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Contact us","Title":"","Url":"/industries/oil-and-gas/how-we-help-clients/energy-solutions/contact-us"}]}}},{"mediaID":{"value":"buildingproductspodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey on Building Products\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-building-product/id1735607317"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/79pncGJtBtzz7pFoR6OiH8"},{"CssClass":"","LinkType":"internal","Target":"","Text":"Listen to previous episodes","Title":"","Url":"/capabilities/people-and-organizational-performance/how-we-help-clients/mckinsey-academy/product-academy/mckinsey-on-building-product"}]}}},{"mediaID":{"value":"talentpodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey Talks Talent\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-talks-talent/id1491112396"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5sW4eHEFMbOvAFJjMfN9a6"}]}}},{"mediaID":{"value":"outlook"},"title":{"value":"A longer, more comprehensive version of our Global Oil Supply \u0026 Demand Outlook is available for purchase upon request.\n"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Contact us","Title":"","Url":"/industries/oil-and-gas/how-we-help-clients/energy-solutions/contact-us"}]}}},{"mediaID":{"value":"talentpodcast2"},"title":{"value":"McKinsey Talks Talent Podcast"},"description":{"value":"Bryan Hancock, Brooke Weddle, and other talent experts help you navigate a fast-changing landscape and prepare for the future of work by making talent a competitive advantage."},"image":{"src":"/~/media/mckinsey/business functions/people and organizational performance/mckinsey talks talent/mck-mtt-disruptor-full-1536x864-smoke-may-2021.jpg","alt":"McKinsey Talks Talent"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"See more episodes","Title":"","Url":"/capabilities/people-and-organizational-performance/mckinsey-talks-talent-podcast"}]}}},{"mediaID":{"value":"investing"},"title":{"value":"Subscribe to McKinsey on Investing"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/industries/private-capital/our-insights/mckinsey-on-investing-issue-1/contact"}]}}},{"mediaID":{"value":"women matter"},"title":{"value":"Subscribe to McKinsey \u003cem\u003eWomen Matter Canada\u003c/em\u003e"},"description":{"value":"Please subscribe if your organization is interested in learning about participating in future research."},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":""}]}}},{"mediaID":{"value":"customs"},"title":{"value":"This article was written as part of a larger research effort to identify opportunities for improvement and innovation at customs agencies globally."},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/industries/public-sector/our-insights/contact"}]}}},{"mediaID":{"value":"tech"},"title":{"value":"\u003cspan class=\"disrupt-ab\"\u003eCreating value beyond the hype\u003c/span\u003e"},"description":{"value":"Let\u0026rsquo;s deliver on the promise of technology from strategy to scale."},"image":{"src":"/~/media/mckinsey/business functions/mckinsey digital/how we help clients/2024/never-just-tech_thumb_1536x1536.jpg","alt":"Never just tech"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Get started","Title":"","Url":"https://www.mckinsey.com/capabilities/mckinsey-digital/how-we-help-clients?cid=njt-ste-crk-mbm-mbm--2403-promo01-njt-bam-web"}]}}},{"mediaID":{"value":"sust"},"title":{"value":"\u003cspan class=\"disrupt-ab\"\u003eMove from plans to progress.\u003c/span\u003e"},"description":{"value":"Sustainability matters. Together we’ll make it real."},"image":{"src":"/~/media/mckinsey/business functions/sustainability/how we help clients/sustainability-campaign_promo-thumb_1536x1536.jpg","alt":"Move from plans to progress."},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Get started","Title":"","Url":"https://www.mckinsey.com/capabilities/sustainability/how-we-help-clients/?cid=susti24-ste-crk-mbm-m01-other-glb-web"}]}}},{"mediaID":{"value":"nwowpodcast"},"title":{"value":"Subscribe to the New World of Work podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/the-new-world-of-work/id1319502839?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3S6fHLW6mcbDJDp1wkArKI"}]}}},{"mediaID":{"value":"globalpodcast"},"title":{"value":"Want to subscribe to \u003cem\u003eThe McKinsey Podcast\u003c/em\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/the-mckinsey-podcast/id285260960?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/4dyjRTP9xzEUPgleo6XjXI"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"YouTube","Title":"","Url":"https://www.youtube.com/@McKinsey/podcasts"},{"CssClass":"","LinkType":"internal","Target":"","Text":"Listen to previous episodes","Title":"","Url":"/featured-insights/mckinsey-podcast"}]}}},{"mediaID":{"value":"Qaudio"},"title":{"value":"Discover and subscribe to McKinsey Quarterly Audio"},"description":{"value":"\u003cstrong\u003eFive ways to subscribe:\u003c/strong\u003e"},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/mckinsey-quarterly-audio/id1437925222?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5mb2zYJnrPcRrML8gx5doD"}]}}},{"mediaID":{"value":"shortlist"},"title":{"value":"Subscribe to the Shortlist"},"description":{"value":"McKinsey\u0026rsquo;s new weekly newsletter, featuring must-read content on a range of topics, every Friday"},"image":{"src":"/~/media/mckinsey/email/shortlist/template/shortlist_promo-interrupter-849120982_1536x1536.jpg","alt":"the Shortlist"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Get the Shortlist in your inbox","Title":"","Url":"/user-registration/manage-account/edit-subscriptions"}]}}},{"mediaID":{"value":"retailpodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey on Consumer and Retail\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-consumer-and-retail/id1526250428"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/41D4bro8PPDOGhEgOEJyHB?si=7l3SeYCZQD-7v3toqd9fHQ"}]}}},{"mediaID":{"value":"insurancepodcast"},"title":{"value":"Want to subscribe to the \u003cem\u003eMcKinsey on Insurance\u003c/em\u003e podcast?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-insurance/id1533196359"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5gZ6YKF7n7C9zWaER4mFZ5"}]}}},{"mediaID":{"value":"strategypodcast"},"title":{"value":"Subscribe to the \u003cem\u003eInside the Strategy Room\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/inside-the-strategy-room/id1422814215?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/4TcFfiQ0e6OYuc5kRDLxqj"}]}}},{"mediaID":{"value":"mgipodcast"},"title":{"value":"Subscribe to the \u003cem\u003eForward Thinking\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/forward-thinking/id1319502839"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3S6fHLW6mcbDJDp1wkArKI?si=0zvPmiCsQ7SBAPanfpY4aA\u0026nd=1"},{"CssClass":"","LinkType":"internal","Target":"","Text":"Listen to previous episodes","Title":"","Url":"/mgi/forward-thinking"}]}}}]},"globalDisruptors":{"disruptor1up":{"results":[{"mediaID":{"value":"cop"},"title":{"value":"Explore COP29 with McKinsey"},"description":{"value":"Join our series of dynamic virtual events during COP29. Discover new research, practical strategies, and collaborations across sectors to move climate action beyond why to how."},"image":{"src":"/~/media/mckinsey/business functions/sustainability/how we help clients/cop/cop29/cop_29_thumb.jpg","alt":"McKinsey at COP29"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Register","Title":"","Url":"https://mckinsey.cventevents.com/Q2MVE1?rt=RrQJ1iBSfEiqSK7N9VAGCw\u0026RefId=cop"}]}}},{"mediaID":{"value":"attheedge"},"title":{"value":"Subscribe to the \u003cem\u003eAt the Edge\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/at-the-edge/id1612870236"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3SnUcezwM20nKnzqvUl6iF"}]}}},{"mediaID":{"value":"authortalks"},"title":{"value":"Visit \u003cem\u003e\u003ca href=\"/featured-insights/mckinsey-on-books/author-talks\"\u003eAuthor Talks\u003c/a\u003e\u003c/em\u003e to see the full series."},"description":{"value":""},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey books/author talks/authortalks_1536x1536_v1.png","alt":"Author Talks"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/featured-insights/mckinsey-on-books/author-talks"}]}}},{"mediaID":{"value":"COVID"},"title":{"value":"Explore McKinsey’s ongoing coverage of the pandemic"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/business functions/risk/our insights/covid 19 implications for business/implications-briefing-note-4-standard-1536x1536.jpg","alt":"COVID-19: Implications for business"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Read more about the business impact of coronavirus and how organizations can respond","Title":"","Url":"/featured-insights/coronavirus-leading-through-the-crisis"}]}}},{"mediaID":{"value":"CE"},"title":{"value":"Customer experience"},"description":{"value":"More insight into creating competitive advantage by putting customers first and managing their journeys."},"image":{"src":"/~/media/mckinsey/industries/public and social sector/our insights/customer experience/customer-experience_22934010_1536x864.jpg","alt":"Customer experience"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":""}]}}},{"mediaID":{"value":"driversofdisruption"},"title":{"value":"Want to subscribe to \u003ca href=\"/features/mckinsey-center-for-future-mobility/our-insights/drivers-of-disruption\"\u003e\u003cem\u003eDrivers of Disruption\u003c/em\u003e\u003c/a\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/drivers-of-disruption/id1687257324"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5fWXzWmVKacc5I7u9CQsah?si=KQ-wUOSyQlqcnfexExiH9Q\u0026nd=1"}]}}},{"mediaID":{"value":"JOL"},"title":{"value":"The Journey of Leadership"},"description":{"value":"\u003cstrong\u003eHow CEOs Learn to Lead from the Inside Out\u003c/strong\u003e\u003cbr /\u003e\nBy \u003ca href=\"/our-people/dana-maor\"\u003eDana Maor\u003c/a\u003e, \u003ca href=\"https://www.linkedin.com/in/hanswernerkaas\"\u003eHans-Werner Kaas\u003c/a\u003e, \u003ca href=\"/our-people/kurt-strovink\"\u003eKurt Strovink\u003c/a\u003e, and \u003ca href=\"/our-people/ramesh-srinivasan\"\u003eRamesh Srinivasan\u003c/a\u003e"},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey books/journey of leadership/journey-of-leadership-book-cover-1536x1536.jpg","alt":"The Journey of Leadership book cover"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/featured-insights/mckinsey-on-books/journey-of-leadership"}]}}},{"mediaID":{"value":"surveys"},"title":{"value":"McKinsey\u0026rsquo;s original survey research"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey global surveys/mck-global-survey-landing-1284442931-thumb-1536x1536.jpg","alt":"McKinsey Global Surveys"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Read more","Title":"","Url":"/featured-insights/mckinsey-global-surveys"}]}}},{"mediaID":{"value":"healthcarepodcast"},"title":{"value":"Want to subscribe to \u003cem\u003eMcKinsey on Healthcare\u003c/em\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-healthcare/id1469979748"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3y1AgAilV4E5Jz0x4wD9O2?si=mLCTUQ2ORTS_LC5gW_htlA\u0026dl_branch=1"}]}}},{"mediaID":{"value":"myleadershipjourney"},"title":{"value":"My Leadership Journey"},"description":{"value":"A series of conversations with leaders about the people and experiences that shaped them"},"image":{"src":"/~/media/mckinsey/business functions/people and organizational performance/our insights/my leadership journey/my leadership journey collection page_131575496_thumb_1536x1536.jpg","alt":"My Leadership Journey"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/capabilities/people-and-organizational-performance/our-insights/my-leadership-journey"}]}}},{"mediaID":{"value":"lessonsfromleaders"},"title":{"value":"State of Organizations: Lessons from leaders"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/business functions/people and organizational performance/our insights/state of org lessons from leaders/soo-chapter-2-872507320-standard-1536x1536.jpg","alt":"\"\""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Explore more interviews","Title":"","Url":"/capabilities/people-and-organizational-performance/our-insights/lessons-from-leaders"}]}}},{"mediaID":{"value":"stateoforg"},"title":{"value":"The State of Organizations 2023"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Report overview","Title":"","Url":"/capabilities/people-and-organizational-performance/our-insights/the-state-of-organizations-2023"}]}}},{"mediaID":{"value":"titaniumeconomy"},"title":{"value":"The Titanium Economy"},"description":{"value":"How Industrial Technology Can Create a Better, Faster, Stronger America\u003cbr /\u003e\nBy \u003ca href=\"/our-people/asutosh-padhi\"\u003eAsutosh Padhi\u003c/a\u003e, Gaurav Batra, and \u003ca href=\"https://fernweh.com/nick-santhanam/\"\u003eNick Santhanam\u003c/a\u003e"},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey books/the titanium economy/titanium_3d-1536x1536-hero-trans.png","alt":"The Titanium Economy Book cover"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/featured-insights/mckinsey-on-books/the-titanium-economy"}]}}},{"mediaID":{"value":"GII"},"title":{"value":"Global Infrastructure Initiative"},"description":{"value":"Convening global leaders in infrastructure and capital projects in pursuit of new solutions"},"image":{"src":"/~/media/mckinsey/business functions/operations/our insights/the global infrastructure initiative/jpg-cpi-improving-construction-productivity-1536x864.jpg","alt":"Improving construction productivity"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Learn more","Title":"","Url":"http://www.globalinfrastructureinitiative.com/"}]}}},{"mediaID":{"value":"FOApodcast"},"title":{"value":"Subscribe to \u003ca href=\"/featured-insights/future-of-asia/future-of-asia-podcasts\"\u003e\u003cem\u003eFuture of Asia Podcasts\u003c/em\u003e\u003c/a\u003e"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/future-of-asia/id1480316959"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/2CZX4AR2DT4hQCFKJG0cCv?si=B20tkrOmQYymuCUhKCQOwA"}]}}},{"mediaID":{"value":"logisticsdisruptors"},"title":{"value":"Logistics Disruptors"},"description":{"value":"Meet the companies shaping how goods will move tomorrow."},"image":{"src":"/~/media/mckinsey/industries/travel logistics and infrastructure/our insights/logistics disruptors/tli-logistics-disruptors-1536x1536.jpeg","alt":"illustration autonomous truck driving off into the future"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/industries/travel-logistics-and-infrastructure/our-insights/logistics-disruptors"}]}}},{"mediaID":{"value":"mckinseyexplainers"},"title":{"value":"Looking for direct answers to other complex questions?"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey explainers/mckinseyexplainers-flat-thumb-1536x1536.jpg","alt":"Circular, white maze filled with white semicircles."},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Explore the full McKinsey Explainers series","Title":"","Url":"/featured-insights/mckinsey-explainers"}]}}},{"mediaID":{"value":"livesandlegacies"},"title":{"value":"\u003cem\u003e\u003ca href=\"/featured-insights/mckinsey-on-lives-and-legacies\"\u003eMcKinsey on Lives \u0026amp; Legacies\u003c/a\u003e\u003c/em\u003e"},"description":{"value":"Highlighting the lasting impact of leaders and executives"},"image":{"src":"/~/media/mckinsey/featured insights/mckinsey on lives and legacies/lives-and-legacies-landing-page-thumb-1536x1536.jpg","alt":"McKinsey on Lives \u0026 Legacies"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Explore previous obituaries","Title":"","Url":"/featured-insights/mckinsey-on-lives-and-legacies"}]}}},{"mediaID":{"value":"Strategy"},"title":{"value":"Strategy in a digital age"},"description":{"value":"Our series on developing corporate and business-unit strategies in a digitally disrupted world."},"image":{"src":"/~/media/mckinsey/business functions/mckinsey digital/our insights/strategy in a digital age/digital-strategy_1536x864_flexpromoimage.jpg","alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"View the collection","Title":"","Url":"/featured-insights/strategy-in-a-digital-age"}]}}},{"mediaID":{"value":"great"},"title":{"value":"The great re-make: Manufacturing for modern times"},"description":{"value":"This 21-article compendium gives practical insights for manufacturing leaders looking to keep a step ahead of today\u0026rsquo;s disruptions."},"image":{"src":"/~/media/mckinsey/business functions/operations/our insights/the great remake manufacturing for modern times/jpg-ops-dm-compendium-cover-1536x864.jpg","alt":"The great re-make: Manufacturing for modern times"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"View the collection","Title":"","Url":"/capabilities/operations/our-insights/the-great-re-make-manufacturing-for-modern-times-compendium"}]}}},{"mediaID":{"value":"futureofamerica"},"title":{"value":"Subscribe to the \u003cem\u003eFuture of America\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/future-of-america/id1616517376"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/0FpeyjojJTKf2hVtQ3otah"}]}}},{"mediaID":{"value":"governmentpodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey on Government\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-government/id1573645359"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/61XsO4B2ersroMft8t3KSq"}]}}},{"mediaID":{"value":"podcast"},"title":{"value":"Want to subscribe to the McKinsey Podcast?\n"},"description":{"value":"\u003cdiv class=\"cta-container -align-horizontal\"\u003e\n \u003ca href=\"#\" class=\"btn btn-fill\"\u003eGoogle Play\u003c/a\u003e\n \u003ca href=\"#\" class=\"btn btn-fill\"\u003eiTunes\u003c/a\u003e\n \u003ca href=\"#\" class=\"btn btn-fill\"\u003eStitcher\u003c/a\u003e\n \u003ca href=\"#\" class=\"btn mck-rss-icon\"\u003eRSS\u003c/a\u003e\n\u003c/div\u003e"},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[]}}},{"mediaID":{"value":"operationspodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey Talks Operations\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-talks-operations/id1598128813"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/7LYQS2fxAoBmC3LgFNJbi8"}]}}},{"mediaID":{"value":"energyinsights"},"title":{"value":"Speak to an expert about our upstream capabilities"},"description":{"value":""},"image":{"src":"/~/media/mckinsey/industries/oil and gas/how we help clients/energy insights/newsletter-signup-promo-bar-1536x768.jpg","alt":"EI newsletter sign up"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Contact us","Title":"","Url":"/industries/oil-and-gas/how-we-help-clients/energy-solutions/contact-us"}]}}},{"mediaID":{"value":"buildingproductspodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey on Building Products\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-building-product/id1735607317"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/79pncGJtBtzz7pFoR6OiH8"},{"CssClass":"","LinkType":"internal","Target":"","Text":"Listen to previous episodes","Title":"","Url":"/capabilities/people-and-organizational-performance/how-we-help-clients/mckinsey-academy/product-academy/mckinsey-on-building-product"}]}}},{"mediaID":{"value":"talentpodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey Talks Talent\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-talks-talent/id1491112396"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5sW4eHEFMbOvAFJjMfN9a6"}]}}},{"mediaID":{"value":"outlook"},"title":{"value":"A longer, more comprehensive version of our Global Oil Supply \u0026 Demand Outlook is available for purchase upon request.\n"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Contact us","Title":"","Url":"/industries/oil-and-gas/how-we-help-clients/energy-solutions/contact-us"}]}}},{"mediaID":{"value":"talentpodcast2"},"title":{"value":"McKinsey Talks Talent Podcast"},"description":{"value":"Bryan Hancock, Brooke Weddle, and other talent experts help you navigate a fast-changing landscape and prepare for the future of work by making talent a competitive advantage."},"image":{"src":"/~/media/mckinsey/business functions/people and organizational performance/mckinsey talks talent/mck-mtt-disruptor-full-1536x864-smoke-may-2021.jpg","alt":"McKinsey Talks Talent"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"See more episodes","Title":"","Url":"/capabilities/people-and-organizational-performance/mckinsey-talks-talent-podcast"}]}}},{"mediaID":{"value":"investing"},"title":{"value":"Subscribe to McKinsey on Investing"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/industries/private-capital/our-insights/mckinsey-on-investing-issue-1/contact"}]}}},{"mediaID":{"value":"women matter"},"title":{"value":"Subscribe to McKinsey \u003cem\u003eWomen Matter Canada\u003c/em\u003e"},"description":{"value":"Please subscribe if your organization is interested in learning about participating in future research."},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":""}]}}},{"mediaID":{"value":"customs"},"title":{"value":"This article was written as part of a larger research effort to identify opportunities for improvement and innovation at customs agencies globally."},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"internal","Target":"","Text":"Learn more","Title":"","Url":"/industries/public-sector/our-insights/contact"}]}}},{"mediaID":{"value":"tech"},"title":{"value":"\u003cspan class=\"disrupt-ab\"\u003eCreating value beyond the hype\u003c/span\u003e"},"description":{"value":"Let\u0026rsquo;s deliver on the promise of technology from strategy to scale."},"image":{"src":"/~/media/mckinsey/business functions/mckinsey digital/how we help clients/2024/never-just-tech_thumb_1536x1536.jpg","alt":"Never just tech"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Get started","Title":"","Url":"https://www.mckinsey.com/capabilities/mckinsey-digital/how-we-help-clients?cid=njt-ste-crk-mbm-mbm--2403-promo01-njt-bam-web"}]}}},{"mediaID":{"value":"sust"},"title":{"value":"\u003cspan class=\"disrupt-ab\"\u003eMove from plans to progress.\u003c/span\u003e"},"description":{"value":"Sustainability matters. Together we’ll make it real."},"image":{"src":"/~/media/mckinsey/business functions/sustainability/how we help clients/sustainability-campaign_promo-thumb_1536x1536.jpg","alt":"Move from plans to progress."},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"external","Target":"","Text":"Get started","Title":"","Url":"https://www.mckinsey.com/capabilities/sustainability/how-we-help-clients/?cid=susti24-ste-crk-mbm-m01-other-glb-web"}]}}},{"mediaID":{"value":"nwowpodcast"},"title":{"value":"Subscribe to the New World of Work podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/the-new-world-of-work/id1319502839?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3S6fHLW6mcbDJDp1wkArKI"}]}}},{"mediaID":{"value":"globalpodcast"},"title":{"value":"Want to subscribe to \u003cem\u003eThe McKinsey Podcast\u003c/em\u003e?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/the-mckinsey-podcast/id285260960?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/4dyjRTP9xzEUPgleo6XjXI"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"YouTube","Title":"","Url":"https://www.youtube.com/@McKinsey/podcasts"},{"CssClass":"","LinkType":"internal","Target":"","Text":"Listen to previous episodes","Title":"","Url":"/featured-insights/mckinsey-podcast"}]}}},{"mediaID":{"value":"Qaudio"},"title":{"value":"Discover and subscribe to McKinsey Quarterly Audio"},"description":{"value":"\u003cstrong\u003eFive ways to subscribe:\u003c/strong\u003e"},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/mckinsey-quarterly-audio/id1437925222?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5mb2zYJnrPcRrML8gx5doD"}]}}},{"mediaID":{"value":"shortlist"},"title":{"value":"Subscribe to the Shortlist"},"description":{"value":"McKinsey\u0026rsquo;s new weekly newsletter, featuring must-read content on a range of topics, every Friday"},"image":{"src":"/~/media/mckinsey/email/shortlist/template/shortlist_promo-interrupter-849120982_1536x1536.jpg","alt":"the Shortlist"},"moreLinks":{"jsonValue":{"value":[{"CssClass":"","LinkType":"internal","Target":"","Text":"Get the Shortlist in your inbox","Title":"","Url":"/user-registration/manage-account/edit-subscriptions"}]}}},{"mediaID":{"value":"retailpodcast"},"title":{"value":"Subscribe to the \u003cem\u003eMcKinsey on Consumer and Retail\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-consumer-and-retail/id1526250428"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/41D4bro8PPDOGhEgOEJyHB?si=7l3SeYCZQD-7v3toqd9fHQ"}]}}},{"mediaID":{"value":"insurancepodcast"},"title":{"value":"Want to subscribe to the \u003cem\u003eMcKinsey on Insurance\u003c/em\u003e podcast?"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/mckinsey-on-insurance/id1533196359"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/5gZ6YKF7n7C9zWaER4mFZ5"}]}}},{"mediaID":{"value":"strategypodcast"},"title":{"value":"Subscribe to the \u003cem\u003eInside the Strategy Room\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://itunes.apple.com/us/podcast/inside-the-strategy-room/id1422814215?mt=2"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/4TcFfiQ0e6OYuc5kRDLxqj"}]}}},{"mediaID":{"value":"mgipodcast"},"title":{"value":"Subscribe to the \u003cem\u003eForward Thinking\u003c/em\u003e podcast"},"description":{"value":""},"image":{"src":null,"alt":""},"moreLinks":{"jsonValue":{"value":[{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Apple Podcasts","Title":"","Url":"https://podcasts.apple.com/us/podcast/forward-thinking/id1319502839"},{"CssClass":"btn btn-fill","LinkType":"external","Target":"_blank","Text":"Spotify","Title":"","Url":"https://open.spotify.com/show/3S6fHLW6mcbDJDp1wkArKI?si=0zvPmiCsQ7SBAPanfpY4aA\u0026nd=1"},{"CssClass":"","LinkType":"internal","Target":"","Text":"Listen to previous episodes","Title":"","Url":"/mgi/forward-thinking"}]}}}]},"disruptorsignup":{"results":[{"mediaID":{"value":"full-width"},"renderMode":{"targetItem":{"key":{"value":"fullwidth"},"value":{"value":"Full Width"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}},{"mediaID":{"value":"left"},"renderMode":{"targetItem":{"key":{"value":"left"},"value":{"value":"Left"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}}]}},"ceros":{"results":[]},"exhibit":{"results":[{"id":"CD56791E2B464C65B9F8B4D6EC0CBCD8","displayName":"Exhibit 1","mediaID":{"value":"1"},"includeTheAccessibilityDisclaimerText":{"boolValue":true},"headline":{"jsonValue":{"value":""}},"hideBottomBorder":{"boolValue":false},"hideEyebrow":{"boolValue":false},"eyebrow":{"jsonValue":{"value":""}},"displayNumber":{"value":"1"},"description":{"jsonValue":{"value":""}},"desktopImage":{"alt":"Across the value chain, the construction ecosystem accounts for approximately 25 percent of global GHG emissions.","src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/svg-sustainability-construction-ex1.svgz","description":""},"mobileImage":{"alt":"","src":null},"renderMode":{"targetItem":{"key":{"value":"Medium content column width"},"value":{"value":"medium"}}},"flourishDataVisualizationID":{"value":""},"pNGImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/png-sustainability-construction-ex1.png","alt":"Across the value chain, the construction ecosystem accounts for approximately 25 percent of global GHG emissions."},"height":{"value":"1265"},"width":{"value":"1536"},"mobileSVGImage":{"src":null,"alt":""},"mobilePNGImage":{"src":null,"alt":""}},{"id":"70E9DFB1EB874F58BE8A8BEC80B8C324","displayName":"Exhibit 2","mediaID":{"value":"2"},"includeTheAccessibilityDisclaimerText":{"boolValue":true},"headline":{"jsonValue":{"value":""}},"hideBottomBorder":{"boolValue":false},"hideEyebrow":{"boolValue":false},"eyebrow":{"jsonValue":{"value":""}},"displayNumber":{"value":"2"},"description":{"jsonValue":{"value":""}},"desktopImage":{"alt":"Building operations and raw-material processing are the largest GHG contributors along the construction value chain.","src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/svg-sustainability-construction-ex2.svgz","description":""},"mobileImage":{"alt":"","src":null},"renderMode":{"targetItem":{"key":{"value":"Medium content column width"},"value":{"value":"medium"}}},"flourishDataVisualizationID":{"value":""},"pNGImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/png-sustainability-construction-ex2.png","alt":"Building operations and raw-material processing are the largest GHG contributors along the construction value chain."},"height":{"value":"1624"},"width":{"value":"1536"},"mobileSVGImage":{"src":null,"alt":""},"mobilePNGImage":{"src":null,"alt":""}},{"id":"F5EB64ACC7BA44C6B00B2057D62F1E19","displayName":"Exhibit 3","mediaID":{"value":"3"},"includeTheAccessibilityDisclaimerText":{"boolValue":true},"headline":{"jsonValue":{"value":""}},"hideBottomBorder":{"boolValue":false},"hideEyebrow":{"boolValue":false},"eyebrow":{"jsonValue":{"value":""}},"displayNumber":{"value":"3"},"description":{"jsonValue":{"value":""}},"desktopImage":{"alt":"Switching to solar thermal and medium insulation in existing stock is a no-regrets move to reduce emissions from heating.","src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/svg-sustainability-construction-ex3-tall-v2.svgz","description":""},"mobileImage":{"alt":"","src":null},"renderMode":{"targetItem":{"key":{"value":"Medium content column width"},"value":{"value":"medium"}}},"flourishDataVisualizationID":{"value":""},"pNGImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/png-sustainability-construction-ex3-tall-v2.png","alt":"Switching to solar thermal and medium insulation in existing stock is a no-regrets move to reduce emissions from heating."},"height":{"value":"2077"},"width":{"value":"1536"},"mobileSVGImage":{"src":null,"alt":""},"mobilePNGImage":{"src":null,"alt":""}},{"id":"24573B7323EF4EF0AE67A98ED46E87D1","displayName":"Exhibit 4","mediaID":{"value":"4"},"includeTheAccessibilityDisclaimerText":{"boolValue":true},"headline":{"jsonValue":{"value":""}},"hideBottomBorder":{"boolValue":false},"hideEyebrow":{"boolValue":false},"eyebrow":{"jsonValue":{"value":""}},"displayNumber":{"value":"4"},"description":{"jsonValue":{"value":""}},"desktopImage":{"alt":"The decarbonization pathway may require a rethink of basic principles and a combination of existing and alternative materials.","src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/svg-sustainability-construction-ex4-tall-v2.svgz","description":""},"mobileImage":{"alt":"","src":null},"renderMode":{"targetItem":{"key":{"value":"Medium content column width"},"value":{"value":"medium"}}},"flourishDataVisualizationID":{"value":""},"pNGImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/png-sustainability-construction-ex4-tall-v2.png","alt":"The decarbonization pathway may require a rethink of basic principles and a combination of existing and alternative materials."},"height":{"value":"2046"},"width":{"value":"1536"},"mobileSVGImage":{"src":null,"alt":""},"mobilePNGImage":{"src":null,"alt":""}},{"id":"765AFD218E1449DC9A19AEC29B3856B2","displayName":"Exhibit 5","mediaID":{"value":"5"},"includeTheAccessibilityDisclaimerText":{"boolValue":true},"headline":{"jsonValue":{"value":""}},"hideBottomBorder":{"boolValue":false},"hideEyebrow":{"boolValue":false},"eyebrow":{"jsonValue":{"value":""}},"displayNumber":{"value":"5"},"description":{"jsonValue":{"value":""}},"desktopImage":{"alt":"Each player has an impact at a specific phase of the construction life cycle; major opportunities require collaborative action.","src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/svg-sustainability-construction-ex5.svgz","description":""},"mobileImage":{"alt":"","src":null},"renderMode":{"targetItem":{"key":{"value":"Medium content column width"},"value":{"value":"medium"}}},"flourishDataVisualizationID":{"value":""},"pNGImage":{"src":"/~/media/mckinsey/industries/engineering construction and building materials/call for action seizing the decarbonization opportunity in construction/png-sustainability-construction-ex5.png","alt":"Each player has an impact at a specific phase of the construction life cycle; major opportunities require collaborative action."},"height":{"value":"1756"},"width":{"value":"1536"},"mobileSVGImage":{"src":null,"alt":""},"mobilePNGImage":{"src":null,"alt":""}}]},"image":{"results":[]},"exhibitcarousel":{"results":[]},"pullquote":{"results":[{"description":{"value":"When we asked 100 senior construction executives what trends they expected to accelerate due to the COVID-19 crisis, 53 percent cited sustainability."},"mediaID":{"value":"1"},"renderMode":{"targetItem":{"key":{"value":"center"},"value":{"value":"center-align"}}},"citation":{"value":""},"enableQuotes":{"boolValue":false},"CTA":{"url":"","linkType":"internal","text":"","target":"","className":"","queryString":"","anchor":"","targetItem":null}},{"description":{"value":"The contribution from raw materials comes primarily from metals (about 50 percent of global steel production is used for construction) and through energy-intensive cement production, which contributes almost 7 percent of global GHG emissions."},"mediaID":{"value":"2"},"renderMode":{"targetItem":{"key":{"value":"center"},"value":{"value":"center-align"}}},"citation":{"value":""},"enableQuotes":{"boolValue":false},"CTA":{"url":"","linkType":"internal","text":"","target":"","className":"","queryString":"","anchor":"","targetItem":null}}]},"disruptorsignup":{"results":[{"mediaID":{"value":"full-width"},"renderMode":{"targetItem":{"key":{"value":"fullwidth"},"value":{"value":"Full Width"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}},{"mediaID":{"value":"left"},"renderMode":{"targetItem":{"key":{"value":"left"},"value":{"value":"Left"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}}]},"articlesidebar":{"results":[{"mediaID":{"value":"1"},"description":{"jsonValue":{"value":"\u003cp\u003eThis article was a collaborative effort by \u003ca href=\"/our-people/jose-luis-blanco\"\u003eJose Luis Blanco\u003c/a\u003e, \u003ca href=\"/our-people/hauke-engel\"\u003eHauke Engel\u003c/a\u003e, Focko Imhorst, \u003ca href=\"/our-people/maria-joao-ribeirinho\"\u003eMaria Jo\u0026atilde;o Ribeirinho\u003c/a\u003e, and \u003ca href=\"/our-people/erik-sjodin\"\u003eErik Sj\u0026ouml;din\u003c/a\u003e\u003c/p\u003e"}},"aboutTheAuthors":{"jsonValue":{"value":""}},"headline":{"jsonValue":{"value":"About the authors"}},"footnotes":{"value":""},"showShareTools":{"boolValue":true},"backgroundColor":{"targetItem":{"key":{"value":"Lightest Grey"},"value":{"value":"lightest-grey"}}},"gradientDirection":{"targetItem":{"key":{"value":"Bottom Right"},"value":{"value":"bottom-right"}}},"renderMode":{"targetItem":{"key":{"value":"Collapsible"},"value":{"value":"default"}}},"isAboutAuthor":{"boolValue":false},"background":{"targetItem":null},"image":{"src":null,"alt":""}}]},"boxout":{"results":[]},"globalsidebar":{"results":[]},"video":{"results":[]},"scrollycontainer":{"results":[]},"bespokeinteractive":{"results":[]},"storycontainer":{"results":[]},"interactive":{"results":[]},"sectionheader":{"results":[]},"statementdisruptor":{"results":[]},"fullbleedphoto":{"results":[]},"tocitem":{"results":[]},"quizcontainer":{"results":[]},"generalup":{"results":[]},"twoupmedium":{"results":[]},"accordion":{"results":[]},"factoid":{"results":[]},"promobarwithquote":{"results":[]},"oneupmedium":{"results":[]},"oneupmediumquote":{"results":[]},"gridwall":{"results":[]},"twoupsmall":{"results":[]},"oneclicksubscribe":{"results":[]},"promobar":{"results":[]},"promobanner":{"results":[]},"sectionhero":{"results":[]},"threeuplinklist":{"results":[]},"table":{"results":[]},"explainertooltip":{"results":[]},"isFiveFiftyHorizontalArticle":{"boolValue":false},"fiveFifty":{"results":[]}},"contextItem":{"ancestors":[{"breadCrumbUrl":{"path":"/industries/engineering-construction-and-building-materials/our-insights"},"breadCrumbTitle":{"value":"Our Insights"},"isMiniSite":{"boolValue":false},"displayName":"Insights on Engineering, Construction \u0026 Building Materials","template":{"id":"85FF05307883480F9A4C82123F72FFD8"}},{"breadCrumbUrl":{"path":"/industries/engineering-construction-and-building-materials/how-we-help-clients"},"breadCrumbTitle":null,"isMiniSite":{"boolValue":true},"displayName":"Engineering, Construction \u0026 Building Materials","template":{"id":"414C6C64AD35440E9668CF39D8A18CCF"}},{"breadCrumbUrl":{"path":"/industries"},"breadCrumbTitle":{"value":"Industries"},"isMiniSite":{"boolValue":false},"displayName":"Industries","template":{"id":"85FF05307883480F9A4C82123F72FFD8"}},{"breadCrumbUrl":{"path":"/"},"breadCrumbTitle":{"value":""},"isMiniSite":{"boolValue":false},"displayName":"Home","template":{"id":"85FF05307883480F9A4C82123F72FFD8"}}]}}},"placeholders":{"main-area":[],"sidebar-area":[]}}]}},"itemId":"7108c6af-2a1e-47ec-89c2-93e075c47657","pageEditing":false,"site":{"name":"website"},"pageState":"normal","language":"en","pageMetaData":{"alternateLanguages":[{"languageCode":"en","displayName":"English","url":"/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction"}],"currentLanguage":"en","navigationLink":"industries","activeItemId":"{D11A29DA-146F-41FB-85E1-D1DF2358F2AC}","miniSiteId":"{6C95986F-1869-4FB4-B081-CB710C010AF7}","officeCode":"","officeDisplayName":"","subscriptionPracticeData":null,"isAlaisedPage":false,"originalHostName":"www.mckinsey.com","updatedDate":"2023-03-04T09:33:20Z","createdDate":"2021-05-26T10:31:30Z","practice":{"isDefaultPractice":false,"name":"Real Assets","code":"N36","stickyTitle":"Sign up for emails on new Real Assets articles","stickySubtitle":"Never miss an insight. We'll email you when new articles are published on this topic.","previewLink":"","previewLinkLabel":"Preview","description":null,"descriptionText":"Get the latest articles on this topic delivered to your inbox","frequency":"Alert","regFormTitle":null},"url":"/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction","isCareersPage":false,"officePath":"","hideAppPromo":false,"itemInfo":{"id":"7108c6af-2a1e-47ec-89c2-93e075c47657","fullPath":"/sitecore/content/McKinsey/Home/Industries/Engineering Construction and Building Materials/Our Insights/Call for action Seizing the decarbonization opportunity in construction","templateName":"ArticleJSS","templateID":"683910db-02ba-40ba-92e7-726c880160a9"}},"defaultSettings":{"McKinsey Quarterly":"\u003cem\u003eMcKinsey Quarterly\u003c/em\u003e","FacebookCID":"soc-web","LinkedInCID":"soc-web","TwitterCID":"soc-web","Home Page SEO Details":{"Description":"McKinsey \u0026 Company is the trusted advisor and counselor to many of the world's most influential businesses and institutions.","Image_Url":"/~/media/images/global/seoimageplaceholder.jpg","Image_Alt":""}},"alumniDatalayerChunk":"static/chunks/alumnidatalayer.325ebb6069c1d69e.js"},"componentProps":{},"notFound":false,"noAccess":false},"__N_PREVIEW":true,"__N_SSP":true},"page":"/[[...path]]","query":{"timestamp":"1732659461754","path":["industries","engineering-construction-and-building-materials","our-insights","call-for-action-seizing-the-decarbonization-opportunity-in-construction"]},"buildId":"9vYT_fWQKRjfPT7lAZJdB","runtimeConfig":{"CONFIG_ENV":"production","CURRENT_ENV":"production","PUBLIC_URL":"https://www.mckinsey.com","PUBLIC_CMS_URL":"https://cms-prod.mckinsey.com","RECAPTCHA_V3_KEY":"6LdC5twSAAAAAF0dePIbY_ckeF05mKdYYJXn7uTg","INVISIBLE_RECAPTCHA_KEY":"6LcWCs0UAAAAAEik2NaGkfGH8mGHo1ThxIt-qUoE","USER_SERVICE_API_HOST":"https://prd-api.mckinsey.com","MOBILE_SERVICES_HOST":"https://mobileservices.mckinsey.com","SEARCH_SERVICE_API_HOST":"https://mckapi.mckinsey.com","OT_DATA_DOMAIN_SCRIPT_COM":"915b5091-0d7e-44d2-a8c4-cf08267e52fe","OT_DATA_DOMAIN_SCRIPT_DE":"13f50396-9d33-4d95-ba3e-1f108fa91009","OT_DATA_DOMAIN_SCRIPT_BR":"679eae24-1d5c-4f33-8aae-b35aa8269966","ADOBE_LAUNCH":"a400cfbb2fd3","BCOV_POLICY":"BCpkADawqM3Xn1B8iTmHawNytUSk0kXaQKMSM51CBVsYKHfwlRhZimTJqbOOq0NuyxTKQnvb4V9myMVRjwGkyGtJQO2HrUPOJHcsgkpbB-jyHwswonskf6XnZaF0TyyKkAQgbymSMtudeD9CLk-xCpqAzTaNUm7a3M3QKLN4pdLRNJ9_HbVMWzNpiUr5ezAVdMciDMwsD-gxNl43d7bfVP3wRhTNWbWUYn3WK7-Oz2gbxV6mMTm0jJU3SjK_x0meTprYUgdUWA-iDgwVglsnfJ_SVtVDPZypUokKv85GzFLM-ywjWlPM2Hg1ucemwwOpa-qvYBGfeMV7zP3n6s22hFCBveiWtHEBpV9N8f4rjmunMlxBx7kSlxIRjWquZm70hLRXMoxAgQ22BC86tBhgR_d1l9_-FzZuZIlZhzJwJi3ug1HszooHM8uEMOkHmB5nYj5XEgVk5JFYGcSwFSnMnNzE1ej2J3jcEiE3eSWHcremWjCZ0s9bs_8R08WpGWkBp8WMXUFfmhPBMk-MGixR_yIu7nJ6B_hYBnVhqKnnoW-xxEmRxgwG0Ev0S96cAcBG8qdlChGN7o1qN0heGTUIYnDk703q3lt9j7X4FgaITrlcPZOWZ96EHytVKUAtmtVp5BVGpiLn4viuUpEdAM_CLSBIaPVunk-39L8tm6m8iUYmbMX_KXPyaL900bQtVQgK39FCa0pUEZ_jSBOGNj1FH8NUPN2TS8_csNWfpN7gsaD9FBN3wUtawAD_RPdJ952odfwJqyvrkN89AyKnFdFMvUh6_4LCIQVYd4M5KC_k1WNLYb11KZhq6O4UaoyD4X1pV4-x0jBzEnc4VQTkL_04dw2xdPJ1uqUrmHuUcIBO0SKaEk6_5HYc3GKfYwmPz1oxMpOi-Rzw1QPyWIdbrcZdFbIHoVZ8FKfyslEv392pJMiKzUnVWL_3mZ0UqnGtddwlXYVdSs57AUdlrfOe7TVaaIMZ_kL7FSrbWrsaSufitSYr62xD1K1-qeb4wkx8QQEorxGJ3RG1Vpn97Pn5JEC_jvj0s7uzFgidYR9bp80EMmPCHUmRg-Hm1Aq1B4YMNc1ARnFz6UvT_8_pMhJEwKuypA-nPoJu4JZJNLVUdw","sitecoreApiKey":"{AD59BE63-BA20-47D4-A1B0-ECF30588E2E2}","sitecoreApiHost":"https://prod.mckinsey.com","FB_APP_ID":"1382278882079245","ARTICLE_API_HOST":"https://prd-api.mckinsey.com","SITECORE_FORMS_SERVICES_API_HOST":"https://prd-api.mckinsey.com","FEATURE_TOGGLES":"{\"stack_adapt_pixel\": true, \"article_seo_schema\":true, \"remember_me\": true, \"gql_promo_banner\": true, \"gql_highlight_bar\": true, \"gql_ceros_placeholder\": true, \"gql_two_up_medium\": true, \"gql_hero_with_partnership_mark\": true, \"gql_brightcove_gallery\": true, \"gql_one_up_medium\": true, \"gql_promo_bar_with_quote\": true, \"gql_fifty_fifty_hero\": true, \"gql_enhanched_hero\": true, \"gql_two_up_small\": true, \"gql_general_up\": true, \"gql_full_bleed_hero\": true, \"passwordless_login_enabled\": true, \"sso_enabled\": true, \"article_id\": \"\", \"personalisation_enabled\":true, \"hide_student_sticky_footer\":true, \"email_domain_validation_enabled\":true, \"enable_cid_cookie_qp\": true, \"otp_verification_enabled\": true}","HEADER_SCRIPT_HASH":"abcd1234","OKTA_AUTH_CLIENT_ID":"0oa8ppb3ypQ8uOI8y697","OKTA_AUTH_ISSUER":"https://dotcomidp.mckinsey.com/oauth2/aus2byav0jTElyFDD697/","AUTO_REDIRECTION_DURATION":"5","LINKEDIN_IDP":"0oaecyj1byxnfrfFk697","APPLE_IDP":"0oaeg2lxy6mq4PX5F697","GOOGLE_IDP":"0oaeczfkb03XL3E4O697","ALUMNI_BASE_API_URL":"https://dev-gateway.intranet.mckinsey.com/:apiKey/v1","ALUMNI_AUTHENTICATE_API_URL":"https://dev-ac3-okta-auth.intranet.mckinsey.com/authenticate","ALUMNI_OKTA_URL":"","ALUMNI_OKTA_ENABLED":"true","GOOGLE_MAP_API_KEY":"AIzaSyDqrGDNMDjy9pXHkMf-_Ut33LoC725GSe4","AWS_GATEWAY":"https://dev-gateway.mckinsey.com","AWS_API_GATEWAY_ID":"o63viscaj4","AWS_PERSONALIZATION_TRACKING_ID":"f3f97bc3-4ca7-4960-9e49-0bcff6294ab4","AWS_PERSONALIZATION_CID":"recommendations-onw-onw-mck-mck-art-2410-v1-user-ext-web","EVENTS_MODULE_CARDS_COUNT":"8","RECOMMENDATIONS_OFFER_ACTIVITY":"Article Recommendations"},"isFallback":false,"dynamicIds":[70281,73769,76731,42354,35278,81732,68578,98391,32991],"gssp":true,"locale":"en","locales":["en","da-DK"],"defaultLocale":"en","isPreview":true,"scriptLoader":[]}</script><script type="text/javascript" src="/4nI7/Dqwk/7B/nBsQ/ONiA/ariaDDVzf6XpO1aN/bTZxKC1lBA/FyIEUX/xKAk0"></script></body></html>