As pressure grows across the construction sector to cut emissions, it's clear that operational energy reductions alone are not enough. To meet climate targets, we must also address the embodied carbon, i.e. the emissions generated during the manufacturing and delivery of construction materials. At Ruukki, we see this shift not just as a challenge, but as an opportunity to help our customers reduce the carbon footprint of buildings from day one — through more sustainable building products and transparent data.

This autumn, we expanded our climate targets to cover the full value chain. These new, Science Based Targets initiative (SBTi) -aligned targets build on the progress we've already made in reducing our own operational emissions and reflect our commitment to advancing sustainable construction through data, transparency, and collaboration.

Climate targets that drive material impact

Ruukki Construction’s new updated climate targets have been defined according to the SBTi framework. They are based on absolute greenhouse gas emissions (tCO₂e), using 2019 as the baseline:

• Scope 1 & 2 (our operations): -85% by 2035
• Scope 3 (value chain emissions): -40% by 2035
• All scopes (“Net-Zero”): -90% by 2045
  

We’ve already achieved a 76% reduction in Scope 1 and 2 emissions by 2025 —well ahead of our original 2030 goal. Going forward, we continue reducing emissions from our own operations, with e.g. efforts related to process and facility heating. Now, as we extend to Scope 3 emissions, we’ll also focus on reducing the emissions associated with supply chain operations such as materials and transport, which make up the majority of our carbon footprint. At the same time, we are planning on extending our reporting to cover newest units, which will impact our total emissions.

Understanding where emissions come from

In our 2019 baseline, Scope 3 emissions totaled approximately 780,000 tons of CO₂e. By 2025, this had decreased to 560,000 tons, largely due to lower production volumes and some improvements in material-specific emissions.

To ensure that our actions are focused where they matter most, we’ve based our Scope 3 target on the categories that account for nearly 90% of our value chain emissions:

• Purchased goods and services – raw materials: steel and insulation
• Transport – inbound from suppliers and outbound to customers
• Waste from operations

Leased facilities not included in Scope 1 & 2 reporting

Raw materials, especially steel, represent over 80% of our Scope 3 emissions. That’s why close collaboration with our key raw material suppliers, especially in steel, will be essential in meeting our Scope 3 targets.

While our product carbon footprints are calculated using life cycle assessment (LCA), which considers environmental impacts from raw material extraction to end-of-life, our corporate climate targets follow the Greenhouse Gas Protocol and focus on reducing emissions at the company and value chain level (Scopes 1, 2 and 3). These two approaches are complementary: by lowering the emissions in our Scope 3 categories, especially in raw material sourcing, we are also reducing the embodied carbon of our building products and improving their LCA results, including Environmental Product Declarations (EPDs).

What this means for our customers

Reducing the embodied carbon of building products enables architects, developers, and builders to meet growing regulatory requirements, secure green financing, and support certifications like BREEAM and LEED. For building owners and investors, it means lower lifecycle emissions and stronger alignment with ESG strategies.

At Ruukki, we are taking action through:

• Expanding the Ruukki® LowCarbon product portfolio and enabling new use cases through customer collaboration
• Collaborating with steel and insulation suppliers to reduce upstream emissions
• Shifting to low-emission transport modes such as biofuels and electric vehicles
• Reducing material waste and scrap and optimizing recycling
• Collaborating with property owners to increase energy-efficiency and use of low-emission energy in rental facilities
• Enhancing emissions data accuracy and coverage

All emission calculations follow the Greenhouse Gas Protocol, ensuring transparency and comparability across the construction industry.

A transparent and shared journey

Our ambition is to provide our customers with not only lower-emission products, but also reliable data and partnerships that support their own climate targets. We know that transparency, collaboration, and continuous improvement are key to achieving meaningful emissions reductions across the industry.

“Our role is to make the carbon footprint of building products visible and verifiable, so our customers can make informed choices with confidence,” says Tuovi Palojärvi, Environment and Sustainability Manager at Ruukki Construction.

We’re committed to keeping you informed of our progress and invite you to join us in driving the shift toward low-carbon construction.