Building Management Systems Adjust to a “Net Zero” World
Reporting on carbon emissions is no longer voluntary for much of the corporate world. The EU has had climate disclosure regulations in place for just over a year. Cities and states around the U.S. also made their own disclosure reporting rules last year, most notably California, which implemented its requirements last October. So far, the Federal government has failed to enact the SEC’s proposed new reporting standards, but it is expected to be front and center on the regulatory agenda session that starts in April of this year.
Even without federal oversight, there is more pressure than ever for companies to make climate commitments. Climate activists are increasingly targeting corporations. Investors are refusing to invest in companies without a climate action plan. Young workers are preferring to work for companies that have a sustainability-minded corporate culture.
All of this has led many companies to make carbon “net zero” pledges. These are corporate initiatives that require the company to reduce its carbon footprint to zero by a certain date. Since there is no definitive definition for net zero, some companies have tried to use carbon offsets to hit their goals. But this tactic has faced scrutiny, leading more and more companies to go even further with their sustainability goals. Of the largest 500 global companies, 66 percent now have climate commitments, 39 percent of which have a net zero target. A growing percentage of them (15 percent) are going even further by committing to being powered only by renewable energy in the near future.
Now, buildings are starting to feel the pressure from this new corporate landscape. Offices, retail locations, logistic properties, and multifamily buildings are all being asked to report on their carbon use. Most are not prepared for this new task. “Fifty-nine percent of building owners say that they don’t have the data to comply with upcoming ESG regulations, and only five percent of buildings have updated their legacy systems to be ready for the kind of building automation needed for carbon reduction,” said Gary Chance, CEO of Prescriptive Data, a building operation and HVAC software provider.
