Why is decarbonization important in buildings?
“Sustainability” is a key priority for businesses, but its broad scope can make it difficult to translate goals into action. “Decarbonization” is a deliberate set of tactics that are part of a larger sustainable business model. It includes intentional strategies and measurable actions that allow organizations to reduce carbon emissions and garner data and insights that inform future decisions.
The move toward decarbonization is being driven by several factors, largely financial and regulatory.
1. STAKEHOLDER & INVESTOR COMMUNITY PRESSURES
Twenty years ago, the sustainability space was typically occupied by the biggest organizations with the most resources. However, in the past 5 – 10 years, we’ve witnessed increased pressure from stakeholders and the investor community, for companies of all sizes, to make concrete efforts toward sustainability by prioritizing decarbonization.
2. FEDERAL, STATE, AND LOCAL REGULATIONS POLICIES AND REGULATIONS
Regulations and fines imposed by federal, state, and local governments have played a significant role in the increased focus on decarbonization efforts among organizations. Incentives have further impacted the rise in actionable goals around decarbonization and allowed organizations to future-proof their business from looming legislation.
3. RISING ENERGY COSTS
With many regions anticipating a significant rise in electricity costs, organizations are paying close attention to three (3) key factors affecting their energy costs and carbon impact: (1) the amount of electricity consumed, (2) when it’s being consumed, and (3) how much of the supply is renewable energy (emissions-free electricity). A tangible benefit to the reduction in energy and operating costs is the reinvestment of capital elsewhere in the business.
4. PEER AND CONSUMER PERCEPTION
Organizations are increasingly more aware of the perception linked to their actions – both among their customers and peer organizations. Customers are making purchase decisions based upon the actions, morals, values, and mission of organizations. Organizations understand that reputation matters and that a commitment toward decarbonization can offer a unique point of differentiation from competitors.
5. COMBATING CLIMATE CHANGE
Reducing carbon emissions is a proven and leading way to mitigate global warming. To be a meaningful part of this change, organizations recognize this as not only a social responsibility commitment but a critical business decision.
The path toward decarbonization
Sustainability is becoming a priority for organizations of all sizes. This is excellent progress, however, we often see customers focused on more visible aspects of their business, while their buildings — which account for nearly 40% of greenhouse gas (GHG) emissions1 – are often overlooked.
The path to decarbonization begins with a customized plan designed to meet the unique needs of each business and its buildings – whether it includes updated equipment, connected services, or net-zero emissions. Equally critical to establishing clear goals is evaluating progress. Intelligent services that offer the ability to monitor, record, document, and report ensure accountability and validate investments for organizations and key stakeholders. Decarbonization strategies are scalable and accessible for both big and small buildings, new construction, and renovation.