Global sustainability challenges are posing new risk factors for investors and property owners within the commercial real estate industry. In the face of these complex environmental developments, businesses have had to look beyond traditional building management approaches to ones in favour of fostering a sustainable built environment, resulting in a drastic shift towards ESG.
As the commonly used acronym for Environmental, Social and Governance, ESG is an important business consideration for commercial real estate professionals globally. Reflecting a shift to proactive sustainability, it is a practice that has urged a growing awareness from industry professionals of the significant social impact buildings can have in a community, encouraging an environmental focus of developing buildings to green standards.
In line with sustainability practices, the application of ESG standards plays a vital a role in improving the carbon footprint of cities through mitigating energy usage in infrastructures, while ensuring more efficient building operations. With nearly 80 per cent of investors deeming ESG as an important factor when making investment decisions, it is becoming a core pillar of long-term growth and sustainability for organizations worldwide. There are various methods and tools companies can use to bring ESG to life in their buildings, and of substantial importance are RTEM systems.
A look into RTEM systems
Real Time Energy Management (RTEM) systems are innovative building technologies that can assist in understanding a building’s performance in real time. This cutting-edge technology uses sophisticated capabilities such as fault detection and diagnostics, predictive analytics, and performance optimization to uncover opportunities for energy use more intelligently in commercial buildings.
RTEM systems collect and monitor a building systems’ performance data in real time by examining current and historical energy consumption patterns. This allows the system to identify optimization opportunities within a building that can significantly reduce energy outflow by 15 to 30 per cent before they evolve into operational liabilities. The data is sent to an advanced cloud-based system where it is translated into actionable insights for property owners, building managers, and tenants.
Benefits of RTEM systems for ESG
Operationally, RTEM systems allow for smarter buildings; environmentally, these technologies support the development of sustainable buildings. RTEM systems create an ongoing measurement and verification tool to improve the energy management of a building or a property portfolio.
This technology centralizes on utility usage tracking, combining energy and air-quality metrics to maximize efficiency and occupant wellness. These actions take place while tracking and comparing the energy performance of buildings across a portfolio to prioritize upgrades. By determining areas of operational improvement in the building, these systems can allocate energy conservation measures strategically, helping to enhance the building’s environmental performance.
A prime example of RTEM systems in effect is through smart HVAC systems. A more efficiently run HVAC system can reduce heating and cooling costs by 80 per cent. With efficient energy management practices in place, it results in lower operational costs and a reduced carbon footprint of the building.
Energy efficiency and sustainability go hand-in-hand. With intelligent energy management systems like RTEM, the development of eco-friendly buildings can be more efficiently and reliably achieved in line with ESG standards. ESG principles are key for a sustainable built environment, and to be sustainable, energy conservation methods must be at the core of building operations.