The Net Zero Challenge: How Data Can Decarbonise Buildings

Net zero is a top priority as we move into 2022. COP26’s ‘code red warning’ showed the world that there is no time for wasting in the fight against climate changes. It was also clear that business leaders are outpacing politicians when it comes to net zero commitments, setting targets for 2030 and earlier.
All corners are clamoring for decarbonisation, including clients, customers, investors, tenants, employees, communities, and tenants. This shift is primarily driven by ethics – more people realize that it’s right to do it, and perhaps the only way to do it – but it’s also becoming a financial imperative. Larry Fink, the CEO of Blackrock, a global investment firm, has been warning for some time that ‘climate risks are investment risks’.
Technology is a key enabler for the transition to net zero. Technology is the single most important catalyst for green progress. Technology’s enhanced data capabilities offer opportunities for continuous improvement based upon real-time analytics, and automated decision-making.
However, many organisations’ current technology and data capabilities are not up to future needs and targets. They will need to invest in technology to close this digital gap.
Action through the built environment
This gap is more apparent in corporate real estate (CRE) than anywhere else. 40% of global carbon emissions are caused by the built environment. This means that the design and management aspects of buildings play a key role in decarbonisation and mitigating climate change’s effects.
Business is increasingly aware of this role. JLL research shows that 56 percent of occupiers have made carbon reduction a part of their CRE strategy. Another 29 percent anticipate doing so by 2025. They also realize that improved technology and data capabilities, such as smart buildings and energy monitoring will increase transparency through better reporting and measurement.
JLL’s research revealed that 84% of occupiers agree that digital solutions are crucial to achieving sustainability goals. Only 43% have expanded their data and benchmarking capabilities. Only 17 percent of organisations have an action plan for real estate.
Data is the power of data
There are many decarbonization opportunities in real estate, from traditional energy and waste solutions to more advanced on-site and offsite solar to carbon offsets. The first step to a net zero journey is to understand and identify the environmental impact of a business and its properties, including the carbon emitted by buildings.
It has been almost impossible to measure a building’s carbon emissions in the past because of its large, complicated, and unwieldy components. They are also all different ages and run at different speeds. It becomes even more complicated when you consider multiple buildings spread across large portfolios.
Imagine it: There are thousands of assets with different manufacturer recommendations, which experience varying demands based on their location, frequency and investment costs.
Smart engineering, which combines IoT sensors, analytics platforms and remote capability with highly skilled engineers, can make all the difference. Organisations can track energy consumption data from equipment and lighting within one system, providing a clear sustainability baseline that allows them to improve their processes.
This data can be used by organisations to inform their current OPEX, which is based on optimizing, recommissioning, and managing existing infrastructure. It can be used as a basis for future strategic asset management plans, investments that reduce carbon, and other key components of any building lifecycle.