The future of buildings is digital and green

Buildings represent our largest opportunity to address the energy and climate crisis, given that they account for 40%¹ of global emissions and currently waste up to 30% of the energy they use. This was the view presented at the recent Schneider Electric Innovation Summit by Schneider’s Vice President, Digital Buildings, Louise Monger, who shared her insights on the future of buildings and how some of Australia’s biggest industries plan to use building infrastructure to go green.

“The switch to more sustainably efficient buildings won’t happen overnight, but it has started,” Monger said. “It’s a dramatic change that will take many years to fully implement. However, it is a crucial step to take, particularly for businesses actively trying to achieve their own emissions goals.”

Speaking of the desire for smart buildings, Monger emphasised that global energy costs were a major reason for Australians, and others around the world, to pivot towards green building infrastructure design — prioritising sustainability over functionality.

Just as COVID-19 had accelerated Australia’s digital transformation, so are rising global energy costs currently driving sustainability, she said.

According to Monger, there are three main sectors set to see dramatic changes in the commercial building space: retail, health care and real estate.

From smart buildings to smart portfolios

The real estate industry is undergoing significant transformation as it moves from smart buildings to smart portfolios. “Five years ago the real estate sector was focused on making the smartest building with the latest technology; however, without a consistent approach and architecture it becomes difficult to manage,” Monger said.

The real estate sector focuses on the aggregation of data so that it can effectively manage a relationship between building owner, manager and occupant. Breaking down these silos has been a large factor in the transition to smart portfolios that will drive these operations, according to Monger.

The IoT retail opportunity

Monger said there was a great opportunity for operators of petrol stations, retail chains and supermarkets to better understand their environmental footprint and energy usage, particularly with the high traffic these retail spaces have and how widely dispersed premises can be.

“Given the size of Australia and how far and widespread our retail is, retailers need to begin thinking how they can manage and control their assets remotely. Utilising IoT and connected devices has the power to drive efficiency across geographically dispersed portfolios,” Monger said.

Cost has been an important factor in the sector’s gradual adoption of these changes, Monger said. “Five years ago, the cost of change was a large prohibitor for many companies. However, inflation is driving the need for greater operational efficiency, and sustainability targets are creating the requirement for sustainability reporting, so the investment in this technology is becoming not just viable but an absolute necessity in Australia.”

Substituting gas for all-electric hospitals

In the healthcare space, Monger said that all-electric hospitals supported by integrated digital systems would be the biggest enabler for the healthcare industry in the race to net zero.

“We are already seeing a huge shift to sustainability across the healthcare industry, so much so that it is catching up to real estate and other areas that have been on this journey for a considerably longer period of time.”

Monger added that over the next two years it would be essential for healthcare facilities to begin to develop strategies for electrification and digitalisation. Not only will this enable more flexible and resilient services, but technology can be leveraged to improve patient experience as well as staff productivity and sustainability.

Electricity will become a much more reliable energy source in the long run, so it is important to make plans now in order to reap the benefits of transitioning away from gas. Investing in innovation will not only bring long-term gains in the healthcare industry but will contribute to the development of a greener future, Monger continued.

“If we are going to achieve net zero, these decisions need to be taken today. It will be challenging and there will be hurdles; however, the removal of non-electric sources such as gas from Australian buildings is critical. It’s complex, but the time to start envisioning a generation without dirty power is now,” she concluded.

For more information on the future of digital buildings, visit ‘Buildings of the Future’.

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Image credit: iStock.com/Elias