CLIMATE BRIEF
OCTOBER 2024
ABOUT CLAYCO
Clayco is a full-service, turnkey real estate, architecture, engineering, design-build and construction firm. We deliver the highest quality solutions on time, on budget and above and beyond expectations to clients across North America.
Founded in 1984 by Executive Chairman Bob Clark when he was 25 years old, Clayco has established new standards for collaborative design, construction quality and craftsmanship.
With $5.8 billion in revenue for 2023 and 3,500+1 employees across the country, we are one of the nation’s largest privately-owned real estate, architecture, engineering, design-build and construction firms.
At Clayco, we understand that sustainable construction practices not only protect our planet but also underpin the lasting success of our projects and the welfare of our stakeholders. That’s why we’re constantly exploring innovative solutions to reduce our ecological footprint. Whether it’s through implementing energy-efficient building designs or prioritizing sustainable materials and construction methods, we are continually exploring ways to incorporate sustainable solutions for our clients. Applying sustainable construction practices creates a built environment that blends with nature, mitigates environmental degradation and ensures a more vibrant future for all.
BOB CLARK, EXECUTIVE CHAIRMAN AND FOUNDER, CLAYCO
"We recognize that the buildings we design and construct impact our climate and shape the built environment. That’s why we aim to integrate sustainable practices into every phase of our projects and operations. Clayco’s goal is to reduce our environmental footprint while creating resilient, adaptive spaces. We strive to connect and collaborate with partners, clients and communities to accelerate and strengthen results. Our legacy won’t just be the structures we build, but the positive impact we leave on our industry and the planet."
EDEN AXELRAD DIRECTOR, CLIMATE CHANGE AND DECARBONIZATION
Our Integrated Approach
Develop. Design. Build. It’s not just the steps in the design-build process that set us apart — it’s how we connect each step to make every project better. We do this through our distinct, yet collaborative, suite of businesses.
As a part of an organization that plays a crucial role in the built environment, we work every day to minimize environmental impacts and address climate change, influence market transformation and provide more meaningful ways to implement action for a sustainable future.
ALANA SPENCER VICE PRESIDENT, SUSTAINABILITY
As a creator and modeler of the built environment, we believe it’s our responsibility to protect and preserve the natural and cultural resources of the communities we serve. With good governance as the foundation for all we do, we focus on people and safety first and meet the needs of our employees, clients and future generations while prioritizing environmental-responsibility. We refer to this as GSE — our approach to Governance, Social and Environmental impact.
Our approach to sustainability is holistic and thorough. We connect sustainable design, construction and operations throughout the lifecycle of projects while supporting our clients with their sustainability goals. At Clayco, we leverage our collective experience to achieve environmentally-responsible programs and collaborate with team leads to determine the sustainability strategy and implementation roadmap for each project.
For more about our sustainability integration efforts across business units, please see page 44 of our most recent GSE report.
Our Environment SUSTAINABILITY ACROSS CLAYCO
AUTHENTICALLY DECARBONIZING
The design and construction industry represents nearly 40% of global carbon emissions.2 As an industry leader, Clayco is committed to reducing our carbon emissions and improving the sustainability of projects. We are dedicated to authentically decarbonizing through our science-based emissions reduction targets and our vision of low-carbon concrete, and by working across the value chain to discover more innovative solutions to the challenges facing Clayco and the industry at large.
Our Journey
Our strategy involves measuring and reducing Clayco’s overall carbon footprint, identifying sustainable business opportunities for leadership and overseeing sustainability practices and training for the enterprise. Each business unit has a Sustainability Action Plan tied to our sustainability commitments, and each project uses a best-practices Sustainability Checklist. Taking a practical approach to balancing sustainability with cost, schedule, aesthetics and constructability, we create shortand long-term value for our clients through innovative, environmentally-responsible solutions.
To help improve our data measurement process and address the complexity of tracking, automating and storing sustainability data, we launched a multi-year effort with the following objectives:
• Improve the timing of data gathering and emissions calculations
• Improve the accessibility and transparency of sustainability data
• Improve data detail and integrity and minimize estimation and extrapolation
JUNE 2022
• Committed to set Scope 1, 2 and 3 sciencebased targets with the Science-Based Targets Initiative (SBTi)
2022
2023
JUNE 2023
• Completed our 2022 reporting year greenhouse gas (GHG) emissions inventory
MAY 2024
• Began the SBTi validation process
AUGUST 2022
• Completed our baseline emissions calculations for 2021 reporting year
While we are dedicated to measuring and reducing our emissions, we recognize the complex challenges ahead. From the infrastructure of the grid, to the financial impacts and availability of materials and Environmental Product Declarations (EPDs), our path to decarbonization has limitations, and we are continuously seeking ways to innovate, collaborate and overcome these obstacles.
AUGUST 2024
• Completed the SBTi validation submission process
OCTOBER 2024
• Published our second annual GSE report
2024
NOVEMBER 2023
• Published our inaugural GSE report
JUNE 2024
• Completed our 2023 reporting year GHG inventory
SEPTEMBER 2024
• Science-based targets approved by SBTi
CLAYCO’S TARGETS
Clayco is one of the first companies in our industry to align to the Science Based Targets Initiative (SBTi) Net-Zero Standard and committing to reach net-zero GHG emissions across the value chain by 2050. We understand that market transformation is warranted in order to achieve net zero, and we aim to partner with industry peers and academic institutions to help lead our industry toward a zero-carbon economy.
Our Targets
3
Our Scope 1 and 2 emissions include those we more directly control, which consists of emissions from our offices (electricity and natural gas), as well as from our project sites (from diesel generators and vehicles we operate). We track Scope 1 and 2 emissions through utility invoices that show the total consumption of natural gas and electricity at our offices. On project sites, we partner with our vendors and utilize telematics to track consumption of fossil fuels, like diesel or gasoline.
Our Scope 3 emissions are from indirect impacts in our value chain, including construction materials (and their transportation and distribution), energy use from our sold products (buildings we design), business travel and employee commuting. Capturing Scope 3 emissions data is complex, and we rely on software and internal crossfunctional teams, partners and vendors to accurately measure the information. For tracking the emissions of our materials, we initially rely on preconstruction reports and design drawings, then pivot to as-built quantities and supplier specific Environmental Product Declarations (EPDs) when construction begins. For energy use in our designed buildings, we rely on energy models and grid emission forecasts to calculate data.
As we look toward the future, we have committed to reducing our absolute Scope 1, 2 and 3 GHG emissions by 90% by 2050.3 We understand that reaching our longterm emissions reduction targets will require marked shifts in our industry, and we are doing the work to innovate and lead.
2030 Targets5
Reducing absolute Scope 1 and 2 GHG emissions 42% by 2030 from a 2021 base year.
Reducing Scope 3 GHG emissions from purchased goods and services 51.6% per square foot of building constructed within the same timeframe.
Clayco’s GHG Emissions
Reducing Scope 3 GHG emissions from use of sold products 51.6% per square foot of building designed within the same timeframe.
SCOPE 1 & 2 CONTROLLED EMISSIONS
SCOPE 3 INDIRECT IMPACTS
Purchased building materials, subcontractor services and office supplies Lifetime energy use emissions of our designed buildings
Additional upstream fuel and energy sources
Business travel Employee commuting
Upstream transportation and distribution Waste generated in operations
End-of-life treatment of our designed buildings
Typical Emissions Pathways
This diagram illustrates our main pathways and their relative contributions to our overall footprint, but is not necessarily representative of 100% of our emissions sources in each calendar year.
We understand that sustainable actions across our business not only protect our planet but help ensure the lasting success of our projects and the wellbeing of our stakeholders for generations to come. To ensure our decarbonization efforts are considered and addressed across the enterprise, we developed a comprehensive plan for select projects, with plans to scale to full implementation across every project at Clayco.
Our Actions ACTIONS ACROSS THE BUSINESS
Structured to address Scope 1, 2 and 3 emissions, the plan provides guidance for how reduction measures can be prioritized and implemented on every project, shows projected carbon reduction impacts and gives direction on who is responsible for each action.
Additionally, we are partnering with architectural, engineering, construction and real estate clients to assess risk and reduction options, enabling stakeholders to understand strategies that mitigate risks caused by natural hazards, climate change and their potential effects on costs.
SOURCE ACTIONS
Jobsite
Emissions
Scope 1 & 2
Materials
Emissions
Scope 3
• Utilize Battery Energy Storage Systems (BESS) with diesel generators where applicable
• Install PV site lighting where applicable
• Implement energy efficiency measures for all trailers
• Use electric equipment and vehicles where applicable
• Implement Construction Waste Plan
• Track and reduce water consumption on project sites
Operational
Emissions
Scope 3
• Perform early embodied analysis to influence materials selection with low-carbon for concrete, steel, insulation and glass
• Utilize low carbon concrete
• Utilize low carbon steel
• Utilize low carbon insulation
• Perform early emissions analysis
• Utilize efficient mechanical and ventilation design (with electrification)
• Install efficient interior and exterior lighting (LED, low LPD, daylighting)
• Ensure optimal orientation thermal performance
EXTENDING OUR ACTIONS
While we are focused on actions across our business to address climate impacts, we know these efforts extend more broadly to our trade partners, suppliers, industry and beyond. That’s why we seek opportunities to support and take part in various initiatives, events and partnerships that are focused on decarbonization and mitigating the impacts of climate change. This includes:
• Membership in the American Institute of Architects (AIA) Architecture & Design Materials Pledge
• Attendance and speaking engagements at events, including Urban Land Institute’s (ULI) convening on embodied carbon, Chicago Build and the Construction Owners Association of America (COAA) Connect conference
• Pilot sponsorship of Building Transparency, which allows Clayco to help drive innovation in the EPD and clean construction space by working directly with software developers and program managers. We are also members of the Contractors Carbon Action Network (ContractorsCAN), which unifies like-minded
contractors and provides opportunities for powerful collaboration.
• Producing a white paper with partner organizations on the performance of concrete mixes and their level of carbon footprint reduction
PROJECT SHOWCASE
CONFIDENTIAL PROJECT
For a confidential data center project, we utilized a sustainable concrete mix which included a proprietary blended ASTM C-1157 cement. ASTM C-1157 is a performance-based hydraulic cement specification. This project had a notable decrease of approximately 4,016 metric tons of CO2e, compared to traditional construction. This novel mix has shown improvements in mass concrete applications, offering better performance with more manageable in-field conditions. With the success of using the lower carbon mix on this project, the Clayco team is exploring ways to incorporate this mix into more projects and applications.
HIGHLIGHTS:
• 40% reduction in emissions (from baseline4) = ~4,000+ metric tons CO2e
• Emissions reduction equivalent to about 450,000 gallons of diesel or running a wind turbine for a whole year.
• Low carbon concrete used for the entire scope of cast-in-place concrete
PROJECT SHOWCASE
CONFIDENTIAL PROJECT
A 350,000 square foot confidential industrial material handling facility incorporates sustainable design and construction through the LEED framework. In 2023, we conducted an embodied carbon analysis for the project, which evaluated the building’s structure, enclosure and finishes. With the materials and measures we incorporated into the project, we were able to see a 45% reduction5 in embodied carbon overall and many additional sustainability achievements.
4 For the baseline, we are referencing 2021 CLF Material Baselines 5 Reduction is in comparison to the Carbon Leadership Forum (CLF) 2021 benchmark data.
HIGHLIGHTS:
• LEED Platinum
• Prioritized the use of materials with Environmental Product Declarations (EPDs)
• 66%+ energy reduction cost
• 67% offset of utility energy with onsite solar array
• 40%+ potable water use reduction and implemented water submeters
• Designed to retain 90% of rainfall onsite; the site includes a retention pond
• Thermafuser for indoor comfort control
• Ideal acoustical comfort for occupants
• 52% reduction in parking footprint
Our Climate Data 05
EMISSIONS ENERGY
6 Transmission and distribution (T&D) losses have been added to fuel- and energy-related activities to align with most-recent SBTi guidance.
7 Well-to-tank items have been added for all transportation-related Scope 3 categories (upstream transportation and distribution, business travel and employee commuting) based on SBTi requirements.
8 This figure excludes electricity from the construction of our new Missouri office, but includes the addition of our Phoenix office.
Renewable10
9 This figure includes diesel, gasoline, owned vehicles and jet fuel.
10 Renewable energy is estimated from location-based energy mix for offices and jobsites. The totals represent the share of electricity (in kWh) generated by sources such as wind, hydropower, solar and geothermal.
11 We will not have 2023 eGRID data until Q1 of 2025. 2023 values are an estimation based on 2022.