Berkeley Group Targets Net-Zero by 2045 in New Transition Plan

Berkeley Group sets 2045 net-zero target across full value chain

The Berkeley Group published its Net Zero Transition Plan on 28 April 2026. The plan commits the UK housebuilder to achieving net-zero greenhouse gas emissions across its entire value chain by fiscal year 2045. This target arrives five years ahead of the UK’s national 2050 deadline.

Berkeley Group specializes in brownfield urban regeneration. The company has now set out a 20-year pathway covering scopes 1, 2, and 3 emissions. Consequently, the plan addresses not just the company’s direct operations but also its supply chain and the homes it builds.

The commitment builds on Science Based Targets initiative validation secured in summer 2025. Berkeley first adopted science-based targets in December 2020. However, the 2025 revision introduced more ambitious reduction goals aligned with limiting global warming to 1.5°C.

For context, the construction and property sector accounts for roughly 40% of global carbon emissions. Therefore, Berkeley’s plan represents a significant undertaking in a historically high-emission industry. The company has already reduced its scopes 1 and 2 emissions by 77% since 2019.

Near-term and long-term reduction targets

Berkeley has structured its plan around specific milestones. By fiscal year 2034, the company aims to cut absolute scopes 1 and 2 emissions by 86% from a 2019 baseline. At the same time, it plans to reduce scope 3 emissions by 63%.

The long-term goals extend these reductions. By 2045, Berkeley intends to achieve 90% cuts across all three emission scopes. Additionally, the company will stop installing new fossil fuel equipment in company-controlled buildings from 1 May 2030.

These targets sit within a broader operational shift. In 2024/25, Berkeley sourced 87% of its operational energy from renewables. Meanwhile, 100% of its UK electricity now comes from renewable sources. The company also reports that 95% of homes completed in 2024/25 achieved an Energy Performance Certificate rating of B or above.

The plan distinguishes between three focus areas. First, reducing embodied carbon in construction materials. Second, enabling low-carbon operations through renewable energy and electrification. Third, delivering low-carbon homes that minimize operational emissions for residents.

Scope 3 emissions present the greatest challenge

Scope 3 emissions typically represent the largest portion of a housebuilder’s carbon footprint. These emissions come from supply chains, material production, logistics, and the operational energy use of completed homes. Therefore, Berkeley’s 63% reduction target by 2034 requires extensive collaboration with suppliers and subcontractors.

Material sourcing poses particular difficulties. Concrete and steel production are carbon-intensive processes. Consequently, achieving deep reductions demands either switching to low-carbon alternatives or working with suppliers to decarbonize their manufacturing. Both approaches involve technical and commercial complexity.

Berkeley’s brownfield focus offers some advantages. Regenerating previously developed land can reduce the need for new infrastructure and virgin materials. Nevertheless, the company still faces challenges around supply chain transparency and influence over upstream emissions.

The commitment to eliminate fossil fuel equipment by May 2030 affects heating systems in new developments. This deadline pushes the company toward heat pumps and electric heating. However, these technologies require adequate grid capacity and may increase upfront costs for some projects.

Commercial implications for UK property developers

Berkeley’s announcement raises the bar for competitors. Other major housebuilders will face increasing pressure from investors and customers to match or exceed these commitments. As a result, the plan could accelerate sector-wide decarbonization efforts.

Investor scrutiny continues to intensify. Financial institutions increasingly require credible transition plans with verifiable targets. Berkeley’s Science Based Targets initiative validation provides third-party assurance that its goals align with climate science. This validation can strengthen the company’s position with ESG-focused investors.

Regulatory risks also factor into the calculation. Future carbon pricing mechanisms or stricter building standards could penalize high-emission developers. By acting ahead of potential regulations, Berkeley reduces its exposure to policy shifts that might otherwise increase costs or constrain operations.

Customer demand for low-carbon homes is growing, particularly among environmentally conscious buyers and social housing providers. Berkeley’s EPC B+ achievement rate already exceeds many competitors. However, maintaining this performance while scaling up delivery requires sustained investment in design and specification.

Supply chain relationships will need restructuring. Berkeley must either find suppliers already offering low-carbon materials or support existing partners through their own transitions. This process takes time and may involve cost premiums in the short term. On the other hand, early movers can secure preferential access to limited supplies of low-carbon products.

Progress tracking and accountability mechanisms

Berkeley reports emissions reductions in its annual reports. The 77% reduction in scopes 1 and 2 emissions since 2019 demonstrates tangible progress against earlier targets. This track record provides some confidence that the company can deliver on its new commitments.

The Science Based Targets initiative framework requires companies to report progress regularly. SBTi can withdraw validation if a company fails to meet interim targets or lacks credible implementation plans. Therefore, Berkeley faces external accountability beyond its own disclosures.

Annual reporting will reveal whether the company maintains its reduction trajectory. Key indicators include absolute emissions volumes across all scopes, renewable energy percentages, EPC ratings for new homes, and supplier engagement metrics. These figures will show whether Berkeley is on track or falling behind.

The 20-year timeframe extends well beyond typical corporate planning horizons. Leadership changes, economic cycles, and technology developments will all influence delivery. However, the phased targets at 2034 and 2045 provide checkpoints that prevent indefinite deferral of difficult decisions.

What this means for the wider construction sector

Berkeley’s plan illustrates the scale of change required across construction. Achieving 90% reductions demands transformation rather than incremental improvement. Other developers will need to address the same challenges around materials, energy, and supply chains.

The UK government’s net-zero strategy depends partly on the built environment sector delivering emissions reductions. Housebuilders that move early can shape emerging standards rather than react to them. Consequently, Berkeley’s approach may influence future building regulations and planning policies.

Smaller developers face different constraints. They typically lack Berkeley’s resources and supplier leverage. However, the plan signals where industry standards are heading. Smaller firms will eventually need to meet similar expectations, particularly when bidding for public contracts or seeking finance.

Technology development will prove critical. Low-carbon concrete, timber construction systems, and improved insulation materials all need to reach commercial viability at scale. Berkeley’s procurement decisions can help accelerate these innovations by demonstrating demand.

Key facts about Berkeley’s net-zero plan

• Berkeley Group will achieve net-zero emissions across scopes 1, 2, and 3 by fiscal year 2045, five years ahead of the UK’s national target.
• By fiscal year 2034, the company aims to reduce scopes 1 and 2 emissions by 86% and scope 3 emissions by 63% from 2019 levels.
• All new company-controlled buildings will exclude fossil fuel equipment from 1 May 2030 onward.
• Berkeley has already cut its scopes 1 and 2 emissions by 77% between 2019 and 2025.
• In 2024/25, 95% of completed homes achieved Energy Performance Certificate rating B or above, and 87% of operational energy came from renewable sources.
• The plan received Science Based Targets initiative validation in summer 2025, confirming alignment with the Paris Agreement’s 1.5°C pathway.
• Long-term targets for 2045 include 90% reductions across all three emission scopes.

Considerations for businesses in the supply chain

Berkeley’s commitments will affect its suppliers directly. Manufacturers of concrete, steel, insulation, and other building materials will face increasing pressure to demonstrate low-carbon credentials. Companies that cannot provide transparent emissions data may lose access to major contracts.

This shift creates both risks and opportunities. Suppliers that invest in decarbonization early can differentiate themselves in a tightening market. Conversely, those that delay may find themselves priced out as customers prioritize low-carbon sourcing. The timeline to 2030 for fossil fuel equipment gives affected suppliers six years to adapt their product ranges.

Collaboration between developers and suppliers will become more important. Berkeley will likely need to work closely with partners to improve manufacturing processes, switch to renewable energy, or develop alternative materials. These relationships require trust and often involve sharing cost or risk.

Smaller firms in the supply chain should monitor these trends carefully. Even if they do not supply Berkeley directly, similar expectations will spread across the sector. Preparing now for stricter carbon requirements can protect market position. Additionally, our sustainable procurement support helps businesses meet evolving supply chain standards.

Government policy and regulatory context

The UK government has committed to reaching net-zero emissions by 2050. The built environment features prominently in this strategy. New building regulations already require higher energy efficiency standards, and further tightening appears likely.

Future Home Standard regulations will mandate that new homes produce 75% to 80% lower carbon emissions from 2025 onward. Berkeley’s targets exceed these requirements. However, the regulatory direction confirms that the whole sector must move toward low-carbon delivery.

Planning policy increasingly incorporates climate considerations. Local authorities can require developers to demonstrate how projects contribute to net-zero goals. Therefore, companies with credible transition plans may find planning approvals easier to secure. Our compliance support services help businesses navigate evolving environmental regulations.

Carbon pricing remains a possibility. The UK Emissions Trading Scheme currently covers power generation and heavy industry but could extend to other sectors. If construction faces direct carbon costs, companies that have already reduced emissions will enjoy a competitive advantage.

Investment and financial implications

Berkeley’s transition plan will require significant capital expenditure. Low-carbon materials often cost more than conventional alternatives. New construction methods may demand retraining and different equipment. Renewable energy infrastructure and heat pump installations add to development budgets.

However, these investments can deliver returns. Energy-efficient homes typically command premium prices or rents. Lower running costs attract buyers, particularly as energy prices remain volatile. Moreover, meeting stringent environmental standards opens access to green finance at favorable rates.

Financial reporting standards increasingly require climate risk disclosures. The Task Force on Climate-related Financial Disclosures framework asks companies to explain how climate change affects their business. Berkeley’s detailed transition plan addresses these disclosure requirements and demonstrates governance around climate risks.

Investors increasingly allocate capital based on ESG criteria. Companies with weak climate strategies may face higher costs of capital or shareholder pressure. Conversely, strong transition plans can attract investment from funds focused on the energy transition. Berkeley’s SBTi validation provides credible evidence for these investors.

What property developers should consider

Berkeley’s announcement shows that ambitious targets are becoming standard in the sector. Other developers should assess their own emissions profiles and consider whether their current plans remain sufficient. Waiting for competitors to act may leave companies exposed to regulatory or market shifts.

Starting with a comprehensive emissions baseline is essential. Many businesses lack accurate data on scope 3 emissions. However, credible targets require understanding where emissions occur. Consequently, investing in measurement and reporting systems should be an early priority.

Engaging suppliers early makes sense. Supply chain decarbonization cannot happen overnight. Building relationships with low-carbon suppliers or supporting existing partners through their transitions takes time. Companies that begin these conversations now will be better positioned when requirements tighten.

Technology choices matter. Decisions made today about heating systems, insulation materials, and construction methods will affect emissions for decades. Developers should evaluate emerging options like heat pumps, modern methods of construction, and low-carbon concrete. These technologies are improving rapidly, and early adoption can provide valuable experience.

Finally, consider how transition plans affect competitiveness. In public procurement, environmental credentials increasingly influence tender outcomes. Similarly, corporate occupiers selecting office space often prioritize buildings with strong sustainability profiles. A credible net-zero strategy can become a commercial differentiator. Our net-zero program supports businesses with carbon reporting and reduction planning.

Authoritative sources and further reading

Berkeley Group’s 2025 Annual Report contains detailed information about the company’s environmental strategy and progress against targets. The report is available on the Berkeley Group corporate website.

The Science Based Targets initiative website explains the validation process and lists all companies with approved targets. This resource helps businesses understand what science-based targets involve and how to set them.

The UK government’s Net Zero Strategy publication outlines the national framework within which corporate commitments like Berkeley’s sit. It covers policy across all sectors, including the built environment.

The UK Green Building Council provides guidance and resources for the construction sector on sustainability and net-zero targets. The organization represents the industry’s response to climate challenges and offers practical frameworks for action.

For businesses seeking to understand their own emissions and develop reduction strategies, the government’s guidance on measuring and reporting environmental impacts offers a useful starting point. This resource explains the basics of carbon accounting and reporting requirements.