Reduce the Performance Gap Before You Invest

Asset managers must understand how to close the gap between the current energy and carbon performance baseline and targeted performance. They are often advised to invest in upgrading equipment and improving building features to solve this gap. Ranging from straightforward interventions, such as installing LED lighting, to more complex and expensive measures. However, one critical step that is frequently overlooked is ensuring that existing systems operate at their intended efficiency, revealing the true baseline. This should be the starting point. 

Specifically, heating, ventilation, and air conditioning (HVAC) systems often drift away from their optimal settings over time. In many cases, buildings can maintain the same comfort levels while reducing total energy consumption by 10-25%. This adjustment lowers the energy use intensity (EUI) to reflect the true baseline against which the building should be measured. By addressing this first, the performance gap becomes much smaller, reducing the sustainability CAPEX number considerably. 

By correcting issues within the Building Automation and Control Systems (BACS) and Building Management Systems (BMS), a building can experience significant improvements, including: 

• Reduced carbon emissions and energy consumption 
• Delayed CRREM stranding by 2-6 years  
• The ability to obtain BREEAM credits 
• Improved visibility of comfort levels  
• Lower energy bills for occupants  
• Identification of components that create bottlenecks for further optimisation  
• Paying less for energy through load shifting 
• And more. 

My advice to asset managers is to hold off on spending money on audits until you've assessed your existing BACS, BMS, and building equipment. This assessment is relatively straightforward and only costs of fraction of an audit. 

This step is particularly important for buildings involved in transactions over the next 24 months. Demonstrating improved performance through real consumption data is essential, whether for (re)signing a lease or attracting potential buyers. In an ESG Due Diligence, the gap between the current baseline (the last 12 months of consumption) and target performance is highlighted. A larger gap indicates that more substantial investments will be necessary, which can impact price negotiations. Typically, stakeholders expect that the optimisation of the BACS or BMS has already been looked at and resolved. 

Needless to say, every asset manager should take this step first. Our BACS, BMS, and HVAC experts can assist you. Reach out to us so we can reveal your buildings' true performance baseline.