Sustainability reporting for the construction industry

covering both emissions from the building site and those locked into materials like concrete and steel. The requirements don't just affect the biggest players: small and medium-sized companies are impacted too, often through demands passed down from customers further up the chain.

Book a session with GoClimate and we'll help you map your direct and indirect emissions and put together the groundwork for CSRD.

Why does sustainability reporting matter for construction?

The construction sector accounts for a significant share of Sweden's climate impact, and clients are demanding more transparency than ever – not least in public procurement, where the Swedish National Agency for Public Procurement is developing sustainability criteria for construction and civil engineering [9]. Clear emissions data often gives companies an edge when bidding for contracts and shapes their ability to win new business. And as more customers start reporting themselves, more companies further down the chain will feel the requirements too.

CSRD – what do the new requirements mean?

CSRD (the Corporate Sustainability Reporting Directive) is the EU's directive on sustainability reporting, and it means more companies now need to report in a structured, comparable way [1]. For the construction sector, that means reporting the full climate impact – including emissions locked into materials and those generated by subcontractors [3]. The requirement applies regardless of industry or activity, but it tends to get complicated for construction companies with long supply chains.

Timeline: when does CSRD apply to which companies?

Following the EU's Omnibus I directive, companies now need to have more than 1,000 employees and over €450 million in net turnover to be in scope. The directive entered into force on 18 March 2026; member states have until 19 March 2027 to transpose the changes into national law [2]. The old threshold of 250 employees no longer applies. That said, companies below these thresholds often still face demands for sustainability data from their own customers – more on that below.

The Swedish government inquiry (Ju 2025:11) delivered its interim report, SOU 2026:27, on 17 April 2026 [10]. The inquiry proposes that Sweden apply the EU's thresholds as they stand: more than 1,000 employees and net turnover above SEK 4.9 billion, the Swedish equivalent of €450 million [11]. Companies already in scope today ("wave 1") would be able to apply the new, higher thresholds as early as the 2026 financial year, while other companies would fall under the new rules for financial years starting on or after 1 January 2027. Swedish subsidiaries of third-country companies are proposed to get their own threshold of SEK 2.2 billion in turnover, with reporting starting at the earliest in 2028 [11].

What does CSRD require companies to report?

The report needs to give a fair picture of the company's impact on the environment and society, and of how sustainability issues affect the business financially. That means companies need a solid understanding of both their own operations and their supply chain – and it's about more than emissions: social sustainability, such as working conditions, diversity and governance, is covered too.

Direct and indirect emissions in construction

CSRD requires companies to report both direct and indirect emissions. Direct emissions come from things like fuel used in machinery and transport. Indirect emissions are often larger, since cement, concrete and steel typically account for a big share of the climate impact here. The groundwork needed overlaps partly with the climate declaration developers already have to produce for new buildings [7].

ESRS standards and report structure

The report needs to be included in the management report and follow the structure set out in ESRS, the European Sustainability Reporting Standards, which define the required headings and metrics [5].

Digital and machine-readable reporting

Eventually, the report will need to be filed digitally and tagged in a machine-readable format [5], which is why construction companies should start reviewing their data collection systems now, so they're ready when the time comes.

Book a demo with GoClimate to get the right data in place today.

Emissions reductions in construction since 2008

In 2022, the construction and property sector accounted for around 10.8 million tonnes of CO2 equivalent in domestic emissions – about 22 percent of Sweden's total emissions, excluding imported building materials [6]. Between 2008 and 2022, emissions fell by around 12 percent [6], showing real progress – great news! But there's still a long way to go, especially on materials.

Climate declarations and thresholds for new construction

Since 1 January 2022, developers have been required to produce a climate declaration for new buildings, reporting the climate impact of construction [7]. The requirement doesn't cover every type of building, but the groundwork can be reused for broader sustainability reporting. For companies already doing this, the step up to CSRD is smaller.

Material choices and circular construction

Low-carbon concrete and steel, along with more renewable materials like timber, are clear levers for cutting emissions. Reusing building components and planning demolition and new construction circularly matter just as much.

The role of subcontractors in the transition

Since construction projects involve a client, a main contractor and several tiers of subcontractors, sustainability information needs to be gathered all the way through the chain.

Social requirements and responsibility in the supply chain

CSRD also covers working conditions for both employees and subcontractors. In an industry with long chains of subcontractors, how well that responsibility is followed through affects companies' reputation and business opportunities.

Materiality assessment and frameworks for small and medium-sized construction companies

A CSRD report is built on a double materiality assessment: how the business affects the world around it, and how sustainability issues affect the business financially. Construction companies not directly in scope can use VS (the Voluntary Sustainability Standard, formerly known as VSME) as a first step – for many companies, a bridge toward full CSRD reporting further down the line.

Try GoClimate's VS tool and get help structuring your first sustainability report.

Tools and data for accurate reporting

Collecting data manually is time-consuming. Digital tools bring it all together in one place – GoClimate helps construction companies calculate and report under CSRD, VS (VSME) and ESRS.

Book a free session and get help understanding exactly what your company needs!

Summary and next steps toward a sustainable construction industry

CSRD raises the bar, but it also gives companies a credible way to show their sustainability work. Those who build up the right data now – and already have experience from climate declarations – will have a head start once the requirements fully kick in.

Finding sustainability reporting confusing? Get in touch with us at GoClimate and we'll sort it out together.