“Reducing emissions offers multiple advantages. Lower operational emissions translate to reduced energy consumption and, consequently, lower utility costs. When on-site renewable energy generation is implemented, these costs are further reduced,” he says.

On the embodied carbon side, minimizing material use can reduce both costs and transportation-related emissions. While low-carbon or high-recycled-content materials may not always be cheaper than conventional options, they are still preferable from a sustainability perspective.

Szircsák sees embodied carbon as “referring to the greenhouse gas emissions generated throughout the lifecycle of building materials, starting from raw material extraction, manufacturing, and transportation to the construction process itself.”

He adds, “Operational carbon encompasses the emissions produced during the building’s use phase. This primarily includes energy consumption but can also extend to water usage, waste generation, and even the commuting habits of building occupants.”

Regarding embodied carbon emissions and the steps required to achieve net-carbon reduction targets, Szircsák argues that the first stage is to reduce the quantity of materials used.

“Examples include concrete, which is the highest contributor, or, within the building interior, suspended ceilings, partitions, and wall or floor finishes,” the head of ESG advisory services says.

Low-carbon Alternatives

“Next, low-carbon alternatives should be added. Timber is a strong candidate, along with materials that contain high recycled content or are produced using low-emission technologies compared to traditional methods,” he argues.

Concerning the defined stages of the lifecycle of a given real estate project and the tools that can be applied to reduce carbon emissions, Szircsák comments that the process begins with selecting the right location and plot, considering factors such as access to public transport, site orientation, and brownfield redevelopment potential. Not to mention that renovating existing buildings always has a lower carbon footprint than new builds.

Design is the next critical phase, during which decisions are made regarding material types and quantities, energy efficiency strategies, and the integration of renewable energy sources. Conducting a lifecycle carbon assessment at this stage can be highly beneficial, as it supports informed design decisions, particularly where there is a possibility to influence the subsequent selection of specific materials.

During construction, the choice of materials, especially those for the structural frame and façade, which can account for 60-75% of total embodied carbon, has a significant impact. It remains an issue how operational carbon emissions can be lowered to reach net-zero carbon goals.

“Reducing operational carbon is more straightforward, particularly when you have influence on the design. There should be a focus on maximizing energy efficiency (like the passive house principles in housing projects), integrating on-site renewable energy, and sourcing renewable energy locally, where possible,” says Szircsák.

“For existing buildings, the key focus is the same, but retrofitting should be planned with both financial and sustainability feasibility in mind. Efficient building operation also plays a crucial role in minimizing emissions,” he adds.

Reliable Data Key

Reliable data collection is seen as essential for understanding energy usage, identifying inefficiencies, and detecting system malfunctions. Tenants are increasingly aware of their carbon footprint and expect greater transparency, not just in electricity usage, but also in heating/cooling energy, water consumption, and waste generation. A robust Building Management System is central, not only for collecting data but also for actively managing and optimizing building operations to enhance efficiency and effectiveness.

“An ESG consultant should ideally be involved early in the design phase of new developments, advising on sustainable design choices and low-carbon construction practices,” Szircsák insists. “For existing buildings, they can identify impactful sustainability actions. Further, for retrofit projects, collaboration with MEP [mechanical, electrical, and plumbing] engineers and energy specialists is also crucial,” he emphasizes.

When it comes to facilitating the economic use of water and stormwater, ESG expertise becomes vital. While energy efficiency often takes center stage, ESG also emphasizes water management among other topics. Freshwater is not an unlimited resource. In Hungary (as elsewhere in the world), news reports highlight how droughts are causing agricultural losses, water shortages in suburban areas, and stormwater-related infrastructure issues.

“The built environment can help mitigate these problems by introducing water efficiency measures and properly treating stormwater, including reuse or infiltration,” notes Szircsák.

Occupancy and demand-based controls are among the most effective strategies for controlling the use of resources for lighting, heating, ventilation, and air conditioning. Examples of this include daylight dimming, occupancy sensors for lighting and HVAC (heating, ventilation, and air conditioning), and demand-controlled ventilation based on real-time measurements.

“Biodiversity is fundamental to maintaining clean air and water and regulating the climate. While biodiversity in urban areas may have a smaller global impact compared to forests, it can significantly influence local microclimates and human well-being. Trees, for example, provide shade, absorb CO₂, and filter air pollutants. Green roofs also offer multiple benefits: they insulate buildings, absorb rainwater and heat, reduce the urban heat island effect, and create habitats for local wildlife,” Szircsák concludes.

This article was first published in the Budapest Business Journal print issue of September 5, 2025.