How Commercial Real Estate is Putting an Effort to Lower Carbon Footprint 

11.12.21 02:03 AM Comment(s) By Assetsoft

The real estate industry contributes 49% of the global carbon emissions including construction and building performance. Undoubtedly, commercial real estate accounts for a large portion of greenhouse gases released into the environment. The buildings are also huge and have massive energy requirements that add to the problem. 

It is time to aim for operational efficiency and cut back on energy usage. The move is crucial not only to combat climate change but also to attract tenants. According to Deloitte, investors are now looking to put their money in greener investments to align with the Paris Agreement. In addition, tenants also expect more in terms of sustainability, especially millennials. For them, countering global warming and the need to protect the environment is a priority. Therefore, property managers must cut back carbon emissions and aim for efficiency to promote sustainability. 

Here are a few ways the commercial real estate industry is working to reduce carbon footprint. 

A Strong Focus on Data and Analysis 

Building data can go a long way to help property managers improve energy efficiency. Earlier, managers used to collect data in spreadsheets to study the energy usage of a building. However, properties today are different with complex building energy systems. Additionally, they have dynamic control systems, equipment optimizations, and data standards. 

As a result, property managers are using digital solutions to collect and analyze data. Let’s take the example of Carbon Lighthouse, an environmental organization with a mission to reduce real estate emissions. The agency works with realtors and commercial real estate operators to achieve sustainability. 

The organization uses an artificial intelligence (AI) platform to collect data from various sensors in a building. After that, the platform uses machine learning (ML) to analyze the data and identify energy efficiency opportunities. The whole process is automated and uses the power of cloud computing. After analysis, realtors can use the data to optimize their energy consumption and lower emissions. 

Aiming for Operational Efficiency 

Commercial real estate can reduce energy consumption by aiming for operation efficiency. It will help reduce emissions and also lower costs for property managers. For example, leveraging natural light needs no electricity and generates zero emissions. In addition, it also makes your interiors look bright and promotes well-being. 

Therefore, real estate agencies are doing their best to control carbon footprint with solutions like energy-efficient lighting. For example, using CFLs can cut 75% of energy consumption, while LEDs also conserve up to 25% more energy than conventional bulbs. Additionally, property managers are also installing efficient HVAC systems like Variant Refrigerant Flow (VRF). It can generate cooling and heating simultaneously and produces minimal greenhouse gases. 

Best of all, VRF can lower energy consumption by 30%to 40%. Moreover, building operators are taking additional steps to combat climate change. They are leveraging renewable energy and switching over to greener options like solar power. In fact, solar energy will account for 50% of global energy production by 2050. The switchover is important as commercial real estate makes up 75% of the country’s carbon emissions. 

Collaboration with Tenants and Occupants 

Many commercial real estate operators are stepping in to do their part in protecting the environment. However, they are far from achieving optimum results and concerned with mostly direct scopes underlined in the Greenhouse Gas Protocol

  • Direct emissions from owned assets like gasoline-powered boilers 

  • Indirect emissions from consumption of energy, heating, or cooling 


The two above scopes are important, but there is another vital scope property managers miss out on: 

  • Direct and indirect emissions resulting from the company’s value chain 

Therefore, property managers need to work with all stakeholders to lower emissions, especially tenants. They should help the occupants to switch over to greener resources and provide the right guidance. 


Additionally, such discussions should happen during signing the lease agreement. Realtors should proactively discuss things like who pays for what, how to pay, and how much to contribute. 


Working together, property managers and tenants can come up with more fitting solutions. The step can turn out to be easier than most think, as today’s customers want to save the environment. 

Innovative Ways of Building 

We discussed above how most property managers are not working with the third scope of the Greenhouse Gas Protocol. However, working with occupants is not enough to achieve sustainability goals. Why? 


A large part of carbon emissions happens before buildings start operating. Materials for construction like steel and concrete also contribute to the overall carbon footprint generated by commercial real estate. Additionally, other carbon-intensive materials like plastic and foam insulation are also a part of the problem. 


Achieving operational efficiency is not enough to combat climate change. As a result, real estate agencies are getting more conscious about sourcing. 

In addition, they are using innovative materials to stop adding to carbon emissions. For example, structural wood is now a popular alternative to steel and produces less impact on the environment. 


Moreover, the use of low-carbon cement and recycled steel are becoming common. Real estate agencies are also looking into different construction methods to protect the environment. For example, modular construction needs 67% less energy compared to traditional methods. Additionally, it cuts deliveries to the construction site by 90%, resulting in lower emissions. 

Boost Efficiency with Energy Audits 

Deloitte says the ideal way for real estate to cut down emissions is to aim for operational efficiency. That starts with a professional energy audit to find out how well your buildings are performing. 


Assetsoft can help you conduct top-notch energy audits with the latest technological solutions, AI, drones, and thermal cameras. We can allow you to zero in on areas and equipment leading to energy loss in your buildings. 


Additionally, we can provide the right advice to make you energy-efficient and environment-friendly. Contact us today to know more. 

Final Thoughts 

Decarbonization is a long-term process. Property managers should focus on operational efficiency and phase out carbon-intensive equipment gradually over 15 – 20 years. Additionally, involve all stakeholders and build up a culture of sustainability. Moreover, promote your initiatives to attract a new generation of environment-conscious tenants and customers. 

Assetsoft

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