The built environment is one of the largest single contributors to global emissions, all the way through the construction process and to specific building assets. In Australia, commercial buildings account for 25 percent of all electricity use, and 10 percent of carbon emissions.
Australia currently leads the world in real estate Environmental, Social and Corporate Governance (ESG) transparency and sustainability, according to the 2022 Global Real Estate Sustainability Benchmarks (GRESB) results. A good result, but complacency may risk Australian industry fall behind the world.
The nation’s 43 percent net emissions reduction by 2030 is now legislated, but the process will hurt if businesses take it slow. With only seven years to go, the built environment can play a major role in reaching these targets – and create a more efficient, profitable and sustainable future.
There are structural obstacles to overcome. Within an office building, units are often owned or tenanted privately, and the landlords often have little access to the bigger picture data on building emissions.
Further, there is a lingering misconception that because heating, cooling, lights, waste systems all require vast amounts of energy to maintain, sustainability comes at the cost of comfort or is expensive.
Despite this, demand for sustainability and energy efficiency among shareholders and consumers alike is high. Both the moral imperative for climate action, and rising energy costs in Australia, have meant the business case for sustainability is strong. Building portfolio owners are increasingly participating in NABERS ratings, which present an analysis of energy, water and waste efficiency for investors. This shows that visibility is important for building managers and investors.
Commercial real estate faces big obstacles
One significant challenge is the lack of data and metrics available to effectively measure and report on ESG performance. This data is often compiled from multiple sources, such as energy bills, building management systems or tenant feedback, which can make it difficult to obtain accurate and reliable data.
To overcome this challenge, many Australian companies are investing in technology and infrastructure to collect and analyse data on building energy consumption and emissions. Specialised tools, such as building energy management systems, smart metering devices and advanced controls software are used to provide building managers with real-time data on energy consumption and emissions.
These investments can’t work in siloes. To reach target levels of efficiency, resiliency and accountability, the vast elements of commercial properties must be inextricably linked to establish integrated ESG programs – ones that balance fluctuations, improve occupant experience, and can be controlled remotely. The resulting data can then be combined with AI-driven insights to identify areas of improvement and implement sustainable performance strategies.
Many iconic buildings around the world are taking sustainability more seriously.
Sydney Opera House is focused on reducing its energy consumption by maximising the capabilities of its building management system (BMS). By taking control of its energy use, the Opera House’s facilities team can reduce the use of building assets like air conditioning in unused rooms or concert halls while maintaining comfort throughout the rest of the site. Understanding where energy is used can help enable big changes.
Meanwhile, the Eiffel Tower, a 136-year-old structure, has installed wind turbines, upgraded its cooling system, and connected rainwater catchment systems. Even in older constructions there are still significant adaptations to be made.
These examples demonstrate that the commercial buildings sector can have a powerful impact on sustainability initiatives worldwide with only minimal disruption. Early movers will reap the rewards.
Australia leads the way, but more needs to be done
The Australian Competition and Consumer Commission (ACCC) has announced it will crackdown on misleading ESG statements, and so building managers will need to provide visibility in case of an audit. This is an opportunity for building managers to build resilience into their ESG structures, and secure stakeholder buy-in, and sustainability, can last in the long-term.
The incentives for sustainability are becoming clearer as more new builds adopt new standards. The National Australian Built Environment Rating System (NABERS) estimates Australian buildings which measure their energy ratings have saved $1 billion in energy costs and reduced emissions by half since 1998. Visibility has been a major catalyst for building managers to be able to understand energy usage and implement strategies to reduce.
State governments around Australia have set mandatory energy efficiency targets for new builds and existing buildings. This is further driving the adoption of new building standards and technologies. By investing in sustainable practices, building owners and managers can not only meet these targets but also benefit from cost savings and improved environmental performance.
It is essential for building managers to take a proactive approach and implement sustainable practices and technologies in their buildings – old mill management can’t cope with today’s expectations. This will not only benefit the environment but also provide a competitive advantage in the long run. Transparency and communication of sustainability efforts are also important to build trust and credibility with stakeholders. The slow movers will perish as governments and investors move against inefficient constructions. Without visibility, sustainability is just a buzz word.
By Stefanie Oakes, General Manager for Asia Pacific Services at Honeywell Building Technologies.
Image: Stefanie Oakes / Supplied
