SBTi approves STARK Group’s climate targets towards net zero by 2050

In 2021, STARK Group became the first distributor of building materials and among the first 20 Danish companies to have its 2030 climate plan approved. The company aims to reduce direct carbon emissions (scope 1 and 2) by 45% and indirect value chain emissions (scope 3) by 25% by 2030.

Now, STARK Group has received approval for its long-term targets leading up to 2050. The company commits to reducing its total emissions (scope 1, 2, and 3) by at least 90% by 2050, with a particular focus on lowering the climate impact of building materials, which account for the vast majority of the group’s emissions.

The targets are based on detailed analyses and a data-driven approach to identifying and reducing climate impact across both STARK Group’s own emissions and the emissions tied to the building materials it sells. This effort is supported by external factors such as stricter emissions requirements in building regulations, suppliers’ own net zero targets, and political initiatives such as the EU Green Deal and the UK Climate Act, under which both the EU and the UK have committed to climate neutrality by 2050.

Louise Askær-Hune, Senior Director, Group Sustainability & ESG, says:

“Our climate ambition is built on extensive data and rigorous calculations, and we are proud that our ambitious targets have now been scientifically validated. This applies not only to our own operations but also to our efforts to bring the entire value chain along on the journey toward a less climate-impacting construction industry. With this approval, we know we are on the right path.”

More than 95% of STARK Group’s emissions come from the building materials the company sells (scope 3). Therefore, STARK Group has had to develop new methods and solutions that challenge industry standards. Currently, climate data is typically calculated using average estimates based on the price of a product group, which means that more expensive materials are assigned worse climate scores than cheaper ones. STARK Group is now the first in the industry to collect and digitise climate data from sources such as Environmental Product Declarations (EPDs) for over 60% of the products in its assortment.

With this new, precise calculation method, building material manufacturers are incentivised to produce more climate-friendly products showing actual emissions. At the same time, customers gain an accurate view of the products’ carbon footprint, enabling them to factor this information into their decision-making.

“Only 2% of our total emissions come from our direct operations. Therefore, the biggest task lies in reducing emissions from the building materials and products we make available from manufacturers and suppliers. The approval of our climate targets has been a comprehensive process, requiring significant work in data collection and analysis. We are therefore pleased to have established a tool that makes product-level climate impact transparent, setting a new standard in our industry,” says Louise Askær-Hune.

For STARK Group, this initiative not only enhances transparency but also strengthens the company’s strategic decision-making. The detailed insight into product emissions enables the company to target its climate efforts and support its net zero ambition with concrete, data-based actions.

STARK Group has already implemented climate monitoring tools in Denmark and Sweden. Later this year, they will also be introduced in Finland, and the company is working to offer the solution across all its markets. In Denmark, the STARK-developed tool KlimaLog received the prestigious Finans Impact Climate Award in 2024.

Since 2021, the company has been a signatory to the UN Global Compact, established a European Supplier Programme with a focus on supplier collaboration in areas such as sustainable development, and achieved the EcoVadis Platinum rating for its commitment to sustainable business practices.

STARK Group’s Approved Climate Targets for 2030 and 2050:

• Reduce absolute Scope 1 and 2 GHG emissions by 45% by FY30 from a FY20 base year.
• Reduce absolute Scope 3 GHG emissions by 25% by FY30 from a FY23 base year.

• Reduce absolute Scope 1 and 2 GHG emissions by 90% by FY50 from a FY20 base year.
• Reduce absolute Scope 3 GHG emissions by 90% by FY50 from a FY23 base year.