Ready, Set, Go!

In a commissioned study conducted by Forrester Consulting on The Race to Decarbonization, 80 percent of organizations name implementing or maturing their sustainability initiatives as their top business priority in the next year, while 47 percent say they are actively working toward at least a 51 percent reduction in carbon emissions/energy consumption. Investing in net zero infrastructure – including resource-efficient and renewable energy solutions and services – is good for the planet and good for organizations’ bottom line.

Net zero buildings drive critical business outcomes, including:

• Government compliance

• Reduced overhead costs

• Enhanced customer, investor and employee engagement

• Future-forward resiliency

• Healthier communities

• Improved occupant comfort

• Accelerated digitalization

Organizations do not have to wait to reap these competitive advantages. Through innovative funding methods and strategic partnerships, facility management leaders can take the plunge and join the race to net zero while retaining valuable capital that can be redirected elsewhere. Organizations can work alongside a trusted partner to identify and deploy the funding and procurement mechanism that aligns with their goals.

Have a plan: Design, digitalize & deploy to achieve net zero in 8 steps

As the decarbonization market grows, there will be many out there selling a plan. How can FMs trust they will help the organization achieve its targets? Will it be just another plan with no path to execution? With the looming deadline of 2050 (or earlier for many companies), private and public sector organizations must accelerate by selecting a partner who can design, digitalize and deploy an effective net zero program.

Be sure the program has these eight steps included. If it does not, expect the program to experience delays or inefficiencies.

• 1. Goal setting and advisory services: GHG inventory baseline, cultural and organization-wide goal and incentive alignment, financial assessment and potential funding solutions

• 2. Safe, secure and healthy implementations: Post-pandemic indoor air quality and ventilation solutions, life safety, building and cybersecurity technologies, building code compliance

• 3. Facility-wide digitalization: Energy management information systems, streamlined data acquisition, data-driven building decision making using predictive, automated, responsive capabilities powered by AI

• 4. Efficient infrastructure: Savings and outcome-based energy efficiency program, deferred maintenance resolution, infrastructure resiliency, electrification solutions, waste management, water conservation

• 5. Sustainable operations: Continuous decarbonization operations management plan, training or staffing future-ready infrastructure experts, sustainable life cycle management, condition-based predictive maintenance

• 6. Distributed energy sources: Distributed energy strategy, on-site renewable energy generation and storage, grid interactive services, EV charging, advanced asset optimization, demand response services

• 7. Renewable energy supply services: Carbon offsets, renewable energy advisory and procurement, renewable finance, development and trading

• 8 Certify and recognize impact: Industry-leading certification facilitation, transparent and traceable decarbonization dashboards, accounting and reporting, brand public relations and communications

The reality is, no two buildings are the same, meaning no two net zero roadmaps should be the same either. Many municipalities and organizations have taken the first steps toward decarbonization; now it is important for them to lean on partners to help calculate the next best step and provide tailored guidance along the journey to net zero. The result is a facility or campus plan that is expertly designed and optimized to drive net zero outcomes, while keeping occupants healthy and safe, for years to come.

Now execute: Full-service green building management

It is easy to set net zero targets but achieving them is its own challenge. Two of the most common barriers to net zero investment are lack time and expertise; there are simply not enough hours in the day for building owners and FMs to focus on aggressive decarbonization management alongside their already lengthy list of priorities. Couple those challenges with the desire to deploy capital on revenue-generating activities, as opposed to facility needs, plus lengthy capital allocation approval processes, and an organization’s net zero aspirations can quickly fade.

Some partnerships allow facility executives to outsource the design, implementation, monitoring, measuring and optimization of their building’s net zero carbon and renewable energy management to a trusted third party. Facility managers gain the peace of mind that their facilities or entire campus is reaching net zero targets while gaining the time and resources to focus on their organization’s primary mission. Owners, managers and occupants all enjoy the benefits of a net zero building without ever having to think about it.

The Powerhouse Alliance, a Norwegian collaboration for energy innovation, wanted to build a net zero smart building that would produce more energy than it consumes over its lifespan. In doing so, the leadership team wished to maximize clean energy production, minimize energy consumption, and deliver a comfortable and pleasant environment for all occupants.

Through a net zero buildings as a service model, the Powerhouse Alliance worked with a partner to implement a complete energy system that harvests twice the buildings’ annual energy consumption by drawing heating and cooling energy from the ocean. This world-class renewable energy solution produces 85,000 kWh annually and powers the Powerhouse Brattørkaia itself, neighboring buildings, electric buses, cars and boats through a local microgrid.

The net zero buildings as a service model also funded the implementation of building management solutions, low energy LED and VAV HVAC systems, energy efficient heat pumps and electric car chargers. All systems can be tracked on a digital dashboard that provides insights into occupancy, comfort and sustainability, allowing FMs to optimize performance. The facility is a shining example of how a building can be entirely self-sufficient, leading the way in net zero infrastructure.

An alternative for the public sector: Delivering green infrastructure with minimal impact to taxpayers through public-private partnerships (P3)

P3 or PPP models can be leveraged by public organizations. Through this mechanism, a public sector organization – such as a K-12 school, state university, government building or transportation hub – contracts with private partners with the expertise and funding to make net zero infrastructure improvements. This approach minimizes the risk to taxpayers while allowing public entities to pay in fixed increments over a set term contingent on the performance and availability of the infrastructure. Communities, cities, states and nations are empowered to invest in healthy, sustainable and connected infrastructure that will serve citizens for generations to come.

With the existing 65-year-old steam plant reaching the end of its life expectancy, the University of North Dakota’s FM team seized the opportunity to build a new natural gas central utility plant to foster a green campus for future generations. Working under a 40-year P3 contract, the university transitioned its operations away from coal, reducing operating costs and maximizing energy efficiency across campus – all while staying on budget and without impacting taxpayers.

The new central utility plant will reduce GHG emissions by 40,000 metric tons of carbon dioxide, equivalent to the carbon sequestered by 74 square miles of forest. The project will also address US$90 million in deferred capital, modernizing facilities while reducing its improvement backlog. By replacing the plant with a future-forward clean energy alternative, the university will provide an enjoyable environment for its students and staff while fostering a green campus.

Outcomes for building efficiency: Performance contracting sustainability goals directly funded by energy savings

While not all organizations require full-service building management, most still lack the upfront capital or want to stretch available funding to make efficient facility updates quickly, especially after navigating a costly pandemic. Through a performance contract, organizations can partner with a third party to make critical green infrastructure improvements that are paid for over a set term by the guaranteed energy and operational savings. Any disparity between the projected and actual savings figures is wholly covered by the partner, mitigating the potential risk to the customer and leaving budgets intact. Alternatively, surplus savings can be redirected back into business-critical initiatives or additional updates that progress a plan to net zero.

Leveraging a performance contract valued at CA$86 million, including taxes, Canadian Forces Base (CFB) Kingston, Canada, will implement base-wide net zero infrastructure improvements to support the Department of National Defence’s energy resiliency strategy. These updates include solar photovoltaic (PV) panels, distributed energy storage, controls optimization, LED lighting retrofits, upgraded water and HVAC systems, central steam plant and heating optimization, and a community awareness program.

The program is projected to reduce CFB Kingston’s GHG emissions by 33 percent and deliver up to CA$1.2 million in utility rebates and incentives. By leveraging performance contracts and data-driven technology, CFB Kingston’s leaders can deliver a sustainable environment that supports soldier welfare and comfort, long-term energy resiliency and a healthy community.

It’s time to catch up

When it comes to sustainability, there is no time to waste. The urgency for net zero leadership is only expected to increase, especially as the world hurtles toward the Paris Agreement’s 2050 deadline. Consumers, investors and employees are holding business leaders to higher standards in pursuit of a greener, healthier planet. The SEC (Securities and Exchange Commission) plans to mandate accountability in emissions reporting for the private sector, further pressuring the urgency to act. It is up to organizations across industries – education, health care, financial and more – to do their part to take tangible and measurable action for healthy, safe and efficient buildings that drive us toward a decarbonized economy.

It is time to choose a partner for five years from now. Whether FMs partner with a third party under a net zero buildings as a service agreement, a performance contract or a public-private partnership, they gain the innovative funding and expertise they need to stretch their dollars further. They are empowered to deploy resource efficiency and renewable energy solutions and services that make net zero infrastructure a reality.