Basic building and business initiatives that can cut emissions

Numerous reports from around the world indicate that around 40% of the world’s energy is used in buildings, so taking the lead in energy efficiency in buildings is a key area to reduce greenhouse gas emissions. This therefore, represents tremendous opportunities for the electrical industry to assist in reducing emissions, as well as operating costs, for their clients.

This article explores some of the initiatives from around the world that are driving business, and subsequently the electrical industry, down the path of greater energy efficiency in buildings. And if building and business owners get on board to create demand for energy efficiency, they can add momentum to these energy-efficiency initiatives.

Local initiatives

The Victorian Employers’ Chamber of Commerce and Industry (VECCI) states that a win-win scenario is possible for the environment and business bottom line as sustainability program participants reap cost savings and competitive advantage.

VECCI stated in a recent press release that Australia’s carbon emissions would be reduced by around 46 million tonnes annually if the business community follows the lead of Victorian firms participating in a business-run Grow Me The Money sustainability program. These savings represent a third of the federal government’s proposed emissions reduction target by 2020 of 138 million tonnes.

VECCI’s analysis of businesses participating in the program revealed that each participant is reducing its carbon footprint by 15.4%, or 28 tonnes, on average. With Australia’s two million businesses currently responsible for 50% of the nation’s 600 million tonnes of annual emissions, an across-the-board cut of 15.4% in business emissions equates to reducing Australia’s emissions by 46 million tonnes. These participating businesses also report cost savings of $6600 on average per year and expect to make ongoing savings as energy costs increase.

VECCI CEO Wayne Kayler-Thomson said the potential savings show that the business community can make a difference: “By undertaking a range of straightforward sustainability measures, businesses have made large savings of carbon and money. There is a great incentive for all Australian businesses to do the same. The Australian business community can cut targeted emissions by one-third by picking sustainability’s low-hanging fruit.”

Many of the savings can be at little or no cost, such as by installing low-energy compact fluorescent lights and motion sensors and deploying simple staff actions that conserve resources. Highlighting the ease and simplicity of these and other energy-efficiency initiatives is the Alto Hotel on Bourke, a four-star boutique Melbourne hotel and participant in the Grow Me The Money program. The hotel installed keycard-activated switches in all of the guest rooms to ensure that lights and air conditioning went off when guests were out. Paper recycling bins were also added to the rooms, helping to reduce landfill waste by 28%. The company estimates it is saving approximately $50,000 a year through a range of energy, water and waste initiatives.

Another participant in the program - Melbourne-based printing company Vega Press - installed a power factor correction system to smooth current to its printing machines and Light-Eco units that effectively make its 2000 fluorescent tubes run in economy mode. These initiatives resulted in savings of several thousands of dollars a year from lower electricity bills.

Sustainable credentials also lead to new business opportunities and competitive advantage. For instance, Ricardo Krauskopf, owner of Alto Hotel on Bourke, says its business customers are increasingly subject to green procurement policies: “In 2008/09, company and government accounts with green procurement preferences made up over 13% of our annual turnover. Two years ago this sector didn’t even rate a mention in our annual statistics.”

Rob Nugent, Commercial Manager at Vega Press, agrees, stating: “Our environmental credentials have enabled us to retain key clients and provided the opportunity to grow our business with other clients. I’m certain that the shift of customers’ attitudes towards greater sustainability will eventually see those firms that are not sustainable struggle.”

There is plenty of help out there for businesses that want to be more sustainable. Both Krauskopf and Nugent have mentored a number of companies, providing advice on how to save carbon and money.

“We’ve advised several motels and hotels on being more sustainable - including one just down the road,” said Krauskopf. “We do it because our industry, the wider business community and Australia need to become greener if we are to secure our future.”

International initiatives

The World Business Council for Sustainable Development’s Manifesto for Energy Efficiency in Buildings offers an implementation guide that aims to assist companies improve the energy performance of their commercial buildings.

The Energy Efficiency in Buildings; Transforming the Market report is a study that shows how energy use in buildings can be cut by half by 2050, listing five key actions:

• Create a baseline of a company’s commercial buildings and set time-based energy and/or CO₂ reduction targets in line with transformative change;
• Publish a company policy for minimum energy-performance levels in its commercial buildings;
• Define and carry out the company’s audit program and implementation strategy to meet energy targets for its commercial buildings;
• Publish, annually, buildings’ energy use, CO₂ emissions and progress against reduction targets, in its respective corporate responsibility report (CSR) or other report; and
• Further promote building energy efficiency among suppliers, employees and other stakeholders, through advocacy, marketing activity, R&D, education and training.

The guide is not designed to replace or reinvent an energy reporting system already in a company’s policy. Rather, it’s intended to be used as a reference by companies that have not yet developed their own building energy reporting system. It suggests a framework under which the five actions could be implemented, with the aim of reducing energy use and CO₂ emissions from commercial buildings that companies use, own or manage.

Companies collect information about their commercial building stock in order to create a baseline against which progress can be measured over time. The scope of the baseline is a company’s ‘building universe’. It is recommended that the lowest performing buildings be addressed first.

This implementation guide covers only commercial buildings. Manufacturing or industrial space are excluded. Reporting of mixed-use space (eg, commercial with industrial) should be consistent and transparent.

Detailed baseline data should include: building location; building type and age; gross and net floor area and number of floors; powered equipment such as HVAC systems; type of use; final energy use from energy bills and surveys from the last five years; and calculated CO₂ emissions.

The proposed baseline metrics are kWh per year, kWh per m², kWh per occupancy rate, tonnes of CO₂ per year, tonnes of CO₂ per m² and tonnes of CO₂ per occupancy rate.

After establishing the baseline, companies should set targets for the energy and CO₂ reductions of their building universe. The report recommends a range of 10-20% energy and CO₂ reduction compared to baseline per decade per metric.

Policies should be introduced at the corporate level and tailored to take into account local market conditions, costs, codes, labels and supply capabilities. Companies should consider demonstrating leadership by setting ambitious policies to create the market pull that is needed for a real market transformation.

For existing buildings, energy audits need to be carried out to define cost-effective strategies to reduce energy use in buildings. Trained professionals or third-party auditors are recommended for these tasks.

Companies committing to the manifesto are encouraged to publish, in CSR reports or in any other publicly available documents, details of their proposed energy use and CO₂ reduction targets, metrics and progress compared to targets.

Behaviour change is the underlying premise of this action - brought about by reinforcing promotional efforts from all companies participating in this manifesto.