Environmental emissions caused by building operations are a major concern in today’s world. As a result, the commercial real estate industry is taking steps towards achieving carbon-neutral building operations. But is this economically feasible?
According to Brodie Boland, partner at McKinsey, the answer is yes. In an interview with Katy McLaughlin from McKinsey Global Publishing, Boland stated that while most carbon emissions come from building operations rather than construction, it is possible to achieve full operational net-zero emissions without any significant financial impact.
Boland emphasized that these solutions do not require new or unattainable technologies but rather simple changes such as using heat pumps and electrifying heating and cooling systems. Other helpful measures include improving insulation and incorporating on-site renewable energy sources.
However, implementing these initiatives requires careful planning beyond just installing automatic timers for lights. Boland stressed the importance of having a well-designed plan in place as there may be upfront costs involved but ultimately lower overall expenses.
For example, investing time and resources into proper insulation can reduce the need for larger heat pumps or costly upgrades to ducting and electrical panels later on.
While planning ahead may seem like an obstacle for commercial real estate owners due to time constraints and financial obligations towards investors; decarbonization has become increasingly important due to regulatory pressures for increased energy efficiency along with tenant demands for net-zero spaces.
Investors also play a crucial role in driving decarbonization efforts as many have made commitments towards achieving net-zero goals themselves; thus directing their capital investments towards properties that align with their values.
Fortunately technology advancements such as AI have made decarbonizing buildings more achievable than ever before; making up approximately 25% of global emission reductions without any significant negative impact on finances.
In conclusion,Boland advises creating forward-looking plans which will signal vendors about scaling supply chains accordingly – “deploying” being key word here – removing all obstacles so we can make our goal of decarbonizing building operations a reality.
