Published in Facilities Executive – February 2025 Issue
By: Kevin Baxter
With global and local mandates targeting net-zero emissions, decarbonization has evolved from a noble aspiration into an operational necessity for facility executives. It’s also important financially as energy is typically the third largest expense in an organization after labor and taxes.
Decarbonization is a transformative approach to reducing carbon emissions in the built environment by minimizing energy consumption and shifting energy sourcing toward cleaner, more sustainable sources when possible. According to the World Green Building Council, buildings are responsible for 37% of global carbon emissions and 34% of energy demand.
How to best prepare your building for the move to decarbonization? The following are some key steps that can pave the way.
Start With A Baseline Assessment
The journey to decarbonization begins with conducting a baseline assessment to understand a facility’s energy profile. This assessment should evaluate energy usage, carbon emissions, operational practices, and energy sources. To be successful, this assessment should involve measuring energy consumption patterns, identifying inefficiencies, and evaluating systems such as HVAC, lighting, and water heating.
Information gleaned from this assessment can be used to set realistic reduction targets that ensure a practical roadmap toward decarbonization.
Make Your Building Work Smarter, Not Harder
Optimizing building systems to work smarter, not harder, is a foundational principle of decarbonization. From the assessment data, facility managers can pinpoint quick wins—low-cost measures like optimizing schedules or sealing building envelope gaps—that offer immediate results.
Simultaneously, more extensive improvements, such as replacing outdated equipment or integrating advanced energy management systems, can be earmarked for long-term planning.
This often begins with leveraging existing building automation systems (BAS). Optimizing BAS can be as simple as checking to see if schedules that were overridden to accommodate an all-night project are then reset back to normal. It can also involve recalibrating sensors, ensuring systems are synchronized, and implementing smarter scheduling practices. For instance, adjusting HVAC schedules to align with actual occupancy patterns or dimming lights in unused spaces can significantly reduce energy waste.
Operational inefficiencies, such as simultaneous heating and cooling or failing to account for seasonal energy demands, can undermine decarbonization efforts. These issues can often be addressed through regular commissioning and performance reviews.
The Role Of Data And AI In Decarbonization
Just as data from the baseline assessment is necessary to kick off the decarbonization effort, an ongoing program will require continual data updates to be successful. Advanced analytics and predictive technologies using artificial intelligence (AI) are powerful tools, but it is critical to approach these technologies with realistic expectations.
AI can recommend predictive maintenance, identify inefficiencies before they escalate, and even suggest operational adjustments for better energy performance. However, these tools are most effective when combined with human expertise and an accurate data foundation. Investing in a robust data collection framework—be it IoT sensors, advanced BAS, or energy management platforms—ensures actionable insights and simplifies multi-system complexity.
The Power Of Procurement: Strategic Energy Buying
Energy procurement is a pivotal component of decarbonization. Facilities in regulated markets face limitations on their negotiating ability due to limited supplier choices, while those in deregulated markets can shop for competitive rates or green energy options.
Negotiating these contracts is challenging because there is no “one size fits all” energy contract and every load profile is priced differently. On average, 50% of the energy cost structure in a contract is relatively the same, but how that rate is built up and delivered to the customer is different for every single company.
An energy supply contract can have up to 25 line items, and negotiating that contract requires experience and a good knowledge of the load profile to manage high-priced peak energy costs.
Managing peak energy rates in regulated markets is important as well, with some companies building out distributed solar, wind power, or other green power sources to augment the grid-delivered power they must purchase.
Building The Business Case
Achieving decarbonization always requires convincing stakeholders to support investments in energy efficiency and renewable energy. Calculating return on investment (ROI) for these initiatives is crucial.
Short-term actions such as improving system operations often have high ROI due to low upfront costs and immediate energy savings. More substantial projects, like installing solar panels or replacing outdated chillers, require lifecycle cost analysis to weigh the initial expense against long-term savings.
Leveraging available incentives and rebates can strengthen the financial case. Many governments and utilities offer subsidies for energy-efficient technologies, renewable energy installations, and energy audits, reducing the financial burden of decarbonization projects.
Creating A Sustainable Implementation Plan
Once a decarbonization strategy is established, implementing it requires careful planning to maximize impact while managing constraints. Projects should be prioritized based on cost-effectiveness, emissions reduction potential, and ease of implementation. For instance, addressing insulation gaps or upgrading LED lighting may be quick wins, while overhauling HVAC systems might require longer lead times.
Stakeholder engagement is essential to ensuring support and alignment. Facility occupants, investors, and operational teams all play a role in the success of decarbonization efforts. Transparent communication about project timelines, expected benefits, and performance metrics helps manage expectations and foster buy-in.
Finally, a robust measurement and verification process ensures accountability and tracks progress. Continuous monitoring allows adjustments to the strategy, enabling facilities to stay on course and achieve emissions reduction goals.
Balancing Ambition With Pragmatism
Decarbonizing a facility is not just an environmental imperative; it is a business opportunity to improve efficiency, reduce costs, and enhance asset value. While challenges such as budget constraints and competing priorities exist, a structured approach—grounded in data, operational optimization, and strategic investments—makes the process achievable.
Facilities that embrace decarbonization are not only contributing to a sustainable future but also positioning themselves as leaders in an increasingly climate-conscious world. The key is to balance ambition with pragmatism, ensuring that each step is both impactful and aligned with broader organizational goals.
