Practice Makes Perfect

Success in this endeavor is based on an FM’s understanding of three main topics:

1. The primary drivers behind the increasing focus on energy efficiency

2. The pivotal role of management software

3. Innovative strategies

Organizations can reap a multitude of benefits that come with embracing energy-efficient practices essential for advancing sustainability in FM.

Energy efficiency is essential for FM

The need for energy efficiency is driven by a confluence of environmental, economic and regulatory factors. Climate change concerns and the urgent need to reduce carbon footprints have made sustainability a key priority for organizations globally. Moreover, rising energy costs directly impact an organization’s bottom line, making energy efficiency not just an environmental responsibility but also a financial necessity.

Sustainability initiatives are increasingly becoming a focal point in environmental, social and governance strategies. Investors, customers and stakeholders are placing higher value on companies that prioritize sustainable operations. Regulatory pressures and government incentives also play a significant role in pushing organizations toward more energy-efficient practices. Other major catalysts for energy efficiency include:

• Environmental drivers: The global consensus on climate change underscores the need for immediate action to reduce greenhouse gas emissions. Facilities, especially large commercial and industrial ones, are significant contributors to energy consumption and emissions. According to the International Energy Agency (IEA), buildings account for nearly 40 percent of global energy consumption and 33 percent of greenhouse gas emissions. This highlights the critical role that energy efficiency in facility management can play in mitigating climate change.

• Economic drivers: Rising energy costs are a major concern for organizations. The U.S. Energy Information Administration (EIA) reported that the average retail price of electricity for commercial customers has increased in the past decade. Implementing energy-efficient practices can lead to substantial cost savings. For instance, the Environmental Protection Agency (EPA) estimates that commercial buildings that consistently benchmark their energy performance achieve average energy savings of 2.4 percent per year.

• Regulatory drivers: Governments worldwide are introducing stricter regulations and offering incentives to promote energy efficiency. In the United States, the Department of Energy's Better Buildings Initiative aims to improve the energy efficiency of American commercial buildings over the next decade.

By understanding these drivers, organizations can better appreciate the importance of energy efficiency and take proactive steps to incorporate sustainable practices into their facility management strategies.

The role of management software in energy monitoring & optimization

FM software has become a pivotal tool in the quest for energy efficiency. These software solutions enable real-time monitoring, analysis and optimization of energy use across facilities. By providing detailed insights into energy consumption patterns, management software helps identify inefficiencies and areas for improvement.

When selecting energy management software, organizations should look for the following key features:

• Real-time data analytics: One of the most critical features of energy management software is real-time data analytics. This capability allows FMs to monitor energy consumption in real time, identify trends and detect anomalies. For example, if a building's energy use spikes unexpectedly, the software can alert the manager, who can then investigate and address the issue promptly. This proactive approach can prevent energy waste and reduce costs.

• Automated reporting: Energy management software can automate the reporting process, making it easier for organizations to track their energy performance and report on their sustainability efforts. Automated reports can provide insights into energy consumption, cost savings and emissions reductions. These reports can be customized to meet the needs of different stakeholders, from FMs to senior executives.

• Integration with building management systems (BMS): Effective energy management software should be able to integrate seamlessly with existing BMS. This integration allows for a more holistic approach to energy management, in which data from various systems (e.g., HVAC, lighting and security) can be analyzed together to optimize overall energy use.

• Benchmarking & predictive analytics: Benchmarking is a crucial feature that allows organizations to compare their energy performance against industry standards or peer facilities. Predictive analytics, on the other hand, can help organizations forecast future energy needs and identify potential areas for improvement.

By leveraging FM tools, organizations can enhance their energy monitoring and optimization efforts, leading to more sustainable and cost-effective operations.

Innovative strategies and best practices for energy efficiency

Achieving energy efficiency requires a multifaceted approach that includes infrastructure upgrades, technology integration and behavioral changes among occupants. Some of the most effective strategies and best practices for enhancing energy efficiency include:

1. Infrastructure Upgrades:

• Energy-efficient lighting: Upgrading to energy-efficient lighting, such as LED bulbs, can result in substantial energy savings. LEDs use up to 75 percent less energy than traditional incandescent bulbs and last up to 25 times longer. Estimates also suggest that widespread use of LED lighting could save about 348 TWh of electricity by 2027, equivalent to the annual electrical output of 44 large electric power plants. An added benefit is the longer lifespan, which further reduces labor costs for replacement.

• HVAC systems: Heating, ventilation and air conditioning (HVAC) systems are significant energy consumers in buildings. Upgrading to energy-efficient HVAC systems, coupled with regular maintenance, can reduce energy consumption. For example, the use of variable frequency drives (VFDs) in HVAC systems can optimize energy use by adjusting motor speed to match the load requirements.

• Building insulation: Proper insulation is essential for maintaining energy efficiency. Insulating walls, roofs and floors can significantly reduce the need for heating and cooling, leading to lower energy consumption and costs. The EPA's ENERGY STAR program estimates that adding insulation and sealing air leaks can save homeowners up to 15 percent on heating and cooling costs.

2. Technology Integration:

• Internet of Things (IoT): The integration of IoT devices allows for smarter energy management. IoT sensors can monitor and control energy use in real time, optimizing heating, cooling and lighting systems based on occupancy and environmental conditions. For instance, smart thermostats can learn occupants' schedules and adjust temperatures accordingly, resulting in energy savings of around 10 percent.

• Renewable energy sources: Incorporating renewable energy sources, such as solar panels and wind turbines, can further enhance energy efficiency. Solar panels, for example, can generate electricity on site, reducing the need for grid-supplied power. The Solar Energy Industries Association (SEIA) reports that the cost of solar photovoltaic (PV) systems has dropped by more than 40 percent over the past decade, making it a more accessible option for organizations. 

3. Behavioral changes:

• Occupant engagement: Encouraging energy-saving behaviors among occupants is essential. This can be achieved through awareness campaigns, incentivizing energy-efficient practices and providing regular feedback on energy consumption. For example, the "Green Office Challenge" program in Chicago encouraged businesses to compete in reducing energy use, resulting in significant energy savings and increased awareness about sustainable practices.

• Energy audits & training: Conducting regular energy audits can help identify areas for improvement and ensure that energy-efficient practices are followed. Training staff on energy management can empower them to take an active role in reducing energy consumption.

Several case studies illustrate the success of these strategies. For example, the Empire State Building in New York City, USA, underwent a comprehensive energy efficiency retrofit that included upgrades to lighting, windows and HVAC systems. The project resulted in a 38 percent reduction in energy consumption and annual savings of US$4.4 million. Similarly, Google's energy management initiatives, which include the use of artificial intelligence to optimize data center cooling, have reduced the company's energy consumption by 40 percent.

By implementing these innovative strategies and best practices, organizations can achieve significant energy savings, enhance their sustainability efforts, and create more comfortable and productive environments for occupants.

The benefits of embracing energy-efficient practices

The benefits of energy efficiency extend beyond cost savings. By reducing energy consumption, organizations can significantly lower their carbon footprints, contributing to global sustainability efforts. Energy-efficient practices also improve the comfort and productivity of building occupants, creating healthier and more appealing work environments. Just some of the many benefits of energy efficiency include:

1. Carbon footprint reduction

   Energy-efficient practices can significantly reduce greenhouse gas emissions. According to the EPA, commercial buildings that implement energy-efficient measures can reduce their carbon footprint by an average of 30 percent. For example, Microsoft's commitment to carbon neutrality and energy efficiency has resulted in a 22 percent reduction in its carbon footprint since 2012.

2. Resource conservation

   By using less energy, organizations also conserve natural resources, such as water and fossil fuels, which are used in energy production. This contributes to the overall sustainability of the planet and helps preserve resources for future generations.

3. Cost savings

   Reducing energy consumption translates into significant cost savings. For instance, the American Council for an Energy-Efficient Economy (ACEEE) found that energy-efficient practices are already cutting costs for several states. Additionally, the General Services Administration (GSA) reports that its energy efficiency programs have saved taxpayers more than US$250 million annually in utility costs.

4. Increased asset value

   Energy-efficient buildings tend to have higher market value. A study by the Lawrence Berkeley National Laboratory found that ENERGY STAR certified buildings command a rental premium of 2-5 percent and sell for up to 16 percent more than noncertified buildings.

5. Enhanced comfort & productivity

   Energy-efficient buildings provide a more comfortable indoor environment, with better temperature control, lighting and air quality. Studies have shown that improved indoor environmental quality can significantly enhance occupant productivity and satisfaction.

Ultimately, the journey toward energy efficiency in FM is both challenging and rewarding. By adopting innovative strategies and leveraging management software, organizations can achieve substantial environmental and economic benefits. As sustainability becomes an increasingly critical aspect of operations, those who prioritize energy efficiency will be well-positioned for long-term success.