Can the Fit-Out Sector Meet the UK’s Net-Zero Targets?
The UK government has set ambitious sustainability goals: within the next five years, all new buildings should be designed to be net zero-carbon, and within the next decade, 100% of new developments must achieve net zero-carbon status. Adrian JG Marsh looks at the challenges the specialist fit-out contracting sector faces.
For the fit-out sector, net-zero-carbon targets present both a challenge and an opportunity. The industry must embrace radical change in materials, procurement, and construction processes while ensuring quality, cost-effectiveness, and compliance with regulations. One of the most effective ways to accelerate this transition is through well-structured framework agreements that prioritise sustainable outcomes.
The Urgency of Net-Zero-Carbon Fit-Outs
Buildings are responsible for nearly 40% of the UK’s carbon emissions, with a significant portion coming from embodied carbon—the emissions associated with materials, manufacturing, and construction. Fit-out projects, particularly those in commercial and retail sectors, contribute heavily to this footprint. Many interior refurbishments occur every five to ten years, leading to frequent material wastage and high energy consumption.
To align with net-zero-carbon goals, the sector must prioritise circular economy principles, including designing for longevity, reusing materials, and minimising waste. It also requires a shift towards sustainable procurement, where low-carbon and recycled materials become the norm rather than the exception.
Procurement as a Catalyst for Net-Zero Fit-Outs
A key driver of sustainable fit-out projects lies in procuring developments through effective framework agreements. These agreements, used by public and private sector clients, establish long-term partnerships between clients, contractors, and suppliers, streamlining the delivery of projects while embedding sustainability at their core.
Framework agreements can:
- Set Clear Net-Zero Requirements: Embedding stringent sustainability criteria at the procurement stage ensures that all appointed contractors and suppliers are committed to net-zero-carbon principles.
- Encourage Innovation and Collaboration: Long-term partnerships enable the supply chain to invest in research, develop new materials, and explore more efficient construction methods.
- Reduce Waste and Improve Circularity: By focusing on sustainable sourcing, frameworks can mandate the use of reclaimed materials and modular components that reduce embodied carbon.
- Drive Cost-Efficiency in Sustainable Solutions: Early engagement through framework agreements can make sustainable choices more affordable by scaling demand for low-carbon materials and processes.
Several existing frameworks, such as Crown Commercial Service’s Construction Works and Associated Services, are already incorporating sustainability requirements, but more targeted efforts in the fit-out sector are needed to accelerate zero-carbon progress.
Key Strategies for Achieving Net-Zero Fit-Outs
- Low-Carbon and Recycled Materials
The selection of materials plays a critical role in determining the carbon footprint of fit-out projects. To meet government targets, fit-out firms must prioritise:
- Reclaimed and recycled materials, such as timber, metal, and glass, reducing demand for virgin resources.
- Bio-based materials, like hempcrete, bamboo, and mycelium insulation, which store carbon and minimise environmental impact.
- Circular economy principles, including re-using furniture and fittings rather than purchasing, ensuring amortising use across multiple fit-outs.
- Energy-Efficient Fit-Outs and Smart Technology
Net-zero-carbon buildings must not only be constructed sustainably but must also operate with minimal energy consumption. The fit-out sector can contribute by integrating:
- Smart lighting and HVAC systems that adapt to occupancy and external conditions, reducing unnecessary energy use.
- Passive design strategies, such as maximising natural light and ventilation, to lower operational energy demand.
- On-site renewable energy solutions, like solar panels and energy storage, to support net-zero operations.
- Reducing Waste Through Modular and Offsite Construction
Traditional fit-out projects generate high levels of construction waste, much of which ends up in landfills. Shifting towards modular and offsite construction can significantly reduce waste and carbon emissions.
- Prefabricated interior elements (such as walls, ceilings, and furniture) can be manufactured offsite, ensuring precision and minimising material waste.
- Modular components can be disassembled and repurposed in future fit-outs rather than discarded.
- Standardised design principles can enable more reuse and adaptation over time.
Overcoming Barriers to a Net-Zero Fit-Out Sector
While progress is being made, several challenges remain:
- Cost Perception: Many clients still believe net-zero fit-outs come with a high price tag. However, long-term savings in energy efficiency and material reuse often offset initial costs.
- Supply Chain Readiness: Many suppliers are yet to scale up low-carbon material production. Stronger demand through framework agreements can drive supply chain transformation.
- Regulatory Gaps: While building regulations are evolving, clearer guidelines on embodied carbon reductions in fit-outs are needed to drive widespread adoption.
Industry leaders must work closely with policymakers to establish incentives, funding mechanisms, and stricter carbon reduction mandates to accelerate change.
A Defining Moment for the Fit-Out Sector
The UK government’s zero-carbon targets present a critical opportunity for the fit-out sector to lead the way in sustainable construction. Through proactive procurement, circular economy principles, and smart technologies, the industry can transform how interior spaces are designed, built, and maintained.
Framework agreements provide a structured pathway to achieving these goals, ensuring long-term commitment and collaboration across the supply chain. By embedding zero-carbon principles at the procurement stage, the fit-out sector can move decisively towards a more sustainable, cost-effective, and resilient built environment.
Now is the time for industry stakeholders to embrace innovation and bold action, securing not just compliance with upcoming regulations but also a competitive advantage in the evolving real estate landscape.