Thousands of corporations have pledged to achieve carbon neutrality in their facilities and operations. One in five of the world’s largest publicly traded companies committed to meeting carbon neutral emissions targets. While many have made bold commitments, few have shared in detail how they will achieve their goals.

 

In a 2022 study, Honeywell found that 87 percent of surveyed multinational organizations believe achieving carbon neutrality in their building portfolio is either extremely (58 percent) or somewhat (29 percent) important in relation to their overall ESG (Environmental, Social, and Governance) goals. Once seen as a fashionable trend, sustainability and carbon neutrality has evolved into a business imperative as the world steps up its efforts to manage the near- and long-term effects of climate change.

From a business perspective, more company leaders view sustainability as a potential force multiplier for competitive advantage rather than simply as a means of demonstrating responsible corporate citizenship. Whatever their reasons for embracing it, executives recognize that sustainability is now key to their success – making the energy efficiency of the buildings they own or lease a priority.

Their logic is well-founded. The operation of commercial buildings accounts for 34 percent of global energy demand and around 37 percent of energy and process-related CO2 emissions in 2021. According to the U.S. Environmental Protection Agency, the average commercial building wastes about a third of the energy.

Start by assessing baselines and building characteristics

The question that remains: do building owners and operators know how they achieving their sustainability pledges? It is likely that many lack the knowledge and the tools to accurately measure progress and how to optimize the carbon and energy footprints of their buildings. This is like trying to lose weight without knowing what current weight or what health factors. Establishing baselines of current energy performance and examining existing building characteristics helps to identify areas that need improvement and assets that can be optimized.

The next step is to identify opportunities to improve energy efficiency in all building systems – particularly in heating, cooling and lighting. The challenge here is to maximize energy efficiency while maintaining a safe, comfortable environment that promotes occupant productivity and well-being. Balancing comfort against energy budgets can present different challenges from season to season or year to year because utility rates, weather and occupancy are continually moving targets.

If a building or portfolio is still burning natural gas or fuel oil for heat, it may have a difficult time reaching carbon neutrality. Shifting to electric heat[i]sustainability strategy – even though a building with all-electric heat may still generate more emissions today than one that heats with natural gas. This is because natural gas burned by a furnace or boiler produces methane, while electric heat may still consume power from the grid produced by coal – which releases almost twice as much CO2 when burned as natural gas does. Electric grids are getting cleaner as coal-fired plants across the United States are rapidly being retired and more renewables are coming online.

Find the technologies that will help realize sustainability goals

Not too long ago, the principal selling point of a building management system (BMS) was that it helped reduce energy costs. Today, the focus has shifted, and the role of a modern BMS is now seen primarily as reducing energy use and carbon footprint. While the two roles are clearly intertwined, the switch in priorities is significant, pointing to a more stringent regulatory landscape.

True sustainability for a business rests on three pillars – people, planet and profit. Besides reducing emissions, a BMS should enable a company to actively manage occupant comfort and shrink its utility bills. The latest BMS solutions, when coupled with advanced software that leverage the capabilities of artificial intelligence and machine learning (AI/ML), to provide predictive, self-learning controls that optimize both energy efficiency and occupant well-being.

These solutions analyze data from sensors, meters, weather stations and other internet of things (IoT) devices to give users visibility into trends and unexplained energy spikes. AI-enabled algorithms can collect data, weigh conditions and demand in buildings against current weather and utility pricing, automatically recalibrate building equipment in real time and respond to issues as they occur. Research by Pacific Northwest National Laboratory shows that as much as 30 percent of building energy consumption can be eliminated through more accurate sensing, more effective use of existing controls and deployment of advanced controls such as those incorporated in modern BMS.

To optimize occupant well-being during peak occupancy levels, for example, sensors track CO2 and indoor air quality parameters to activate filtration and ventilation when and where they are needed. When it makes more sense to maximize energy efficiency, AI/ML software tracks both indoor and outdoor conditions, pulling in fresh air when temperature and humidity inside and outside the building are closely aligned to minimize the HVAC’s energy load. To optimize space utilization within a building, sensors track occupancy levels in different areas and adjust air quality accordingly.

Look beyond the obvious to reach full carbon neutrality

While heating, cooling and lighting account for most of a building’s energy use, smaller power draws should also be assessed. Computers, printers and other electronics – especially video equipment – consume a notable amount of electricity in commercial office buildings, and refrigeration units and large-scale water heating equipment, if included on site, can also factor notably into the energy equation.

If a building houses a data center – a group of networked computer servers that store and process data – it will change the energy equation. Data centers operate continuously day and night and require an unusual amount of cooling, an uninterruptible power supply and special security equipment. They add considerable challenges to a sustainability strategy, but there are solutions specifically to reduce their carbon impact.

Smart buildings can not only optimize their own energy consumption autonomously but become valuable contributors to smart city infrastructure as facilities become more interconnected.

Carbon neutral is attainable, but it is not easy

Making a building more sustainable starts with assessing realistic baselines of current energy performance and taking an unflinching look at existing infrastructure. Beyond that, it requires investment in new technology, a good deal of creative thinking and a concerted, holistic effort across the organization. When drawing up a sustainability plan, company leaders should include all internal stakeholders and external partners in the discussion to broaden their perspective and avoid making shortsighted decisions.

Continuous monitoring, analytics, diagnostic tools and fault detection take the guesswork out of optimizing energy efficiency and eliminating waste. Equipping a building for a sustainable future can require significant investment, but some investments yield a quicker return than others. BMS have been shown to provide on average a two-year simple payback period, making these systems a cost-effective option compared with other energy efficiency solutions.

Reducing carbon impact is possible no matter the building size, age or operational limitations. Yet the looming ramifications of global warming – and the alarming contribution of commercial buildings to climate change – make it a matter of corporate conscience to take immediate action to reduce the carbon emissions from every building.