Climate change is that serious global issue that is associated with environmental and human systems. The climate change reasons are many and various. Many research documents interlink between key business activities and the constantly changing climate. Consequently, organizations are considered to be among the most important contributors to climate change. Many researchers have investigated the negative impact of humankind on the earth and assimilating capacity of the earth. They articulated that promoting environmentally friendly practices in the workplace, such as conservation, recycling, and waste reduction, will not only help businesses become greener, but will also have a beneficial impact on climate change and stop future environmental damage. Many industries are contributing towards carbon emissions but residential construction (house building companies) of Australia contributes significantly to CO2 emissions and uses a large quantity of non-renewable energy. According to the report by IEA World Energy Statistics and Balances, house building contributes approximately 39% of the annual global CO2. Considering that human activity plays a major role in climate change and that employee behavior frequently determines the effectiveness of environmental programs, promoting pro-environmental behavior among employees in firms is now essential to reduce the construction industry’s contribution to carbon emissions. As a result, it is becoming increasingly evident that minimizing carbon emissions from the construction sector is crucial for addressing the severity of climate change. This study will integrate Sustainable Transformational Leadership theory with Value Belief Norm Theory and will apply its constructs in construction industry of Australia to find the factors that affects employees’ pro-environmental behavior in this industry (house building companies) in Australia.