Millions of people worldwide recognize April as Earth Month, a time to celebrate, advocate for, and protect our planet's resources and beauty for generations to come. This year, like last year, the theme for Earth Month 2023 is "Invest in Our Planet," with a focus on engaging governments, institutions, and businesses to commit to doing their part.
Corporate sustainability programs have gained momentum due to the increased awareness of the impact of business operations on the environment, society, and the economy. This shift in focus has brought the issue to the forefront for corporations globally. Many leading companies, such as Microsoft, Amazon, and Google, have developed detailed roadmaps and published their commitments to creating a sustainable future on their websites. For instance, Microsoft aims to achieve carbon negativity, zero waste, and water positivity by 2030.1 Amazon has set an ambitious goal of powering its operations with 100% renewable energy by 2023, which is five years ahead of its original target of 2030.2 Furthermore, Google has pledged to decarbonize its energy consumption, aiming to operate on carbon-free energy everywhere, 24/7 by 2030.3
Recently, SIREAS conversed with corporate sustainability leaders to examine three crucial trends that are currently impacting companies. These trends are 1) carbon neutral and net zero strategies, 2) renewable energy options, and 3) the reduction of water usage and waste generation. Here are the insights we gathered.
1. Carbon neutral and net zero strategies
The primary greenhouse gas produced by human activities is carbon dioxide (CO2), according to the United States Environmental Protection Agency (EPA). In 2021, CO2 contributed to 79% of all U.S. greenhouse gas emissions from human activities, with the combustion of fossil fuels (coal, natural gas, and oil) for energy and transportation being the primary emitter of CO2.4 This is concerning as increased levels of greenhouse gases have led to warming, impacting various aspects of climate, such as surface air and ocean temperatures, precipitation, and sea levels.
To mitigate the negative effects of greenhouse gases, many companies have set goals to decrease their emissions through carbon neutral and net zero initiatives. Carbon neutral initiatives aim to balance CO2 emissions with carbon removal or offsetting, while net-zero initiatives aim to eliminate all greenhouse gas emissions across the entire supply chain without offsets.
Buildings are currently accountable for 39% of global energy-related carbon emissions, with operational emissions accounting for 28% of emissions, such as the energy required to heat, cool, and power the buildings, and 11% of emissions from materials and construction, according to Darrell Smith, the former Sr. Director of Global Workplace, Real Estate and Facilities at Micron Technology. These figures demonstrate that companies that can implement effective strategies to decrease their carbon footprint can have a significant impact on global climate change.
To develop effective strategies for reducing carbon emissions, companies must first identify the sources of their emissions. According to David Darr, Chief Sustainability Officer at Vanguard Renewables, emissions from real estate occur during three primary stages: (1) development and construction, (2) operations, and (3) end of life. Although these stages are linked, they require distinct strategies to achieve low-emission objectives. In this article, we will focus on the operational stage.
Darr explains that companies today primarily use three strategies for efficient building operations: sourcing of fuel and energy, efficient utilization of fuel and energy, and waste management.
Sourcing of fuel and energy
The process of sourcing energy needs from renewable energy suppliers and distributors is known as corporate procurement of renewable energy. This practice has become more common as companies shift their procurement strategies to meet corporate social responsibility, cost-saving, supply diversification, and reputational goals.
According to Darr, there are several options for facilities in terms of fuel and energy sourcing, including on-site solar or wind production. Companies are increasingly turning to Power Purchase Agreements (PPAs) for wind or solar to acquire virtual renewable energy and fuel for their operations. PPAs are contracts between a corporate buyer and a power producer that establish a pre-determined price for purchasing electricity for a specified period. PPAs can help companies reduce their environmental footprint and lower energy costs. Additionally, companies can invest in carbon offsets and renewable energy certificates (RECs) to reduce the environmental impact of their emissions. RECs allow companies to match their electricity use with renewable energy production to offset Scope 2 emissions in North America.
Efficiency in utilization of fuel and energy
Efficiency in the utilization of fuel and energy is a critical concern for facilities management. Facilities managers are responsible for the efficient operation of buildings, and energy is often one of the largest expenses in operating a building. Darr, explains that companies must ensure the efficient utilization of low emission energy and fuel sources, even when they are in use. Recent improvements in facility equipment, such as primary HVAC and lighting systems, provide opportunities to achieve energy-efficient buildings with minimal emissions. The U.S. Energy Information Administration states that HVAC systems are the largest energy users, accounting for approximately 40% of energy consumption in commercial buildings. Additionally, according to the Commercial Buildings Energy Consumption Survey (CBECS), lighting accounts for 17% of all electricity consumed in U.S. commercial buildings. Darrell Smith suggests that adding sensors and submetering is a simple and effective way to identify, track, and implement strategies to reduce energy consumption.
There are several ways that facilities managers can improve energy efficiency in buildings:
- Conduct an energy audit: An energy audit is an assessment of the energy use of a building, which can identify areas of energy waste and opportunities for improvement. This can help facilities managers to prioritize their efforts and develop an action plan for improving energy efficiency.
- Upgrade building systems: Building systems, such as HVAC systems and lighting, are major energy consumers in buildings. Upgrading to more energy-efficient systems can significantly reduce energy consumption and costs.
- Implement energy-efficient practices: Energy-efficient practices, such as turning off lights and equipment when not in use, can help to reduce energy waste and costs.
- Use smart building technology: Smart building technology, such as building automation systems, can help to optimize energy use and reduce waste by controlling building systems based on occupancy and other factors.
- Engage building occupants: Building occupants can play a significant role in energy efficiency by adopting energy-saving habits, such as turning off lights and equipment when not in use, and using natural light instead of artificial lighting.
Improving energy efficiency in facilities management requires a comprehensive approach that involves technology, behavior change, and ongoing monitoring and maintenance. By implementing energy-efficient practices and technologies, facilities managers can reduce energy consumption, lower costs, and reduce the environmental impact of buildings.
Waste management
Operational waste in building operations can be categorized into several types, including recyclable materials such as paper, cardboard, glass, plastic, and metal, hazardous materials such as flammable, corrosive, toxic, or reactive chemicals, non-recyclable materials such as food-tainted items, plastic wrap, and construction materials, electronic materials such as computers, printers, and phones, and clinical materials such as dressings, needles, and swabs.
To effectively manage operational waste, organizations can adopt a comprehensive waste management approach that seeks to minimize waste volumes, prioritize waste reduction and reuse, and promote recycling. By conducting waste audits and providing training to building occupants on proper waste handling procedures, facilities managers can increase awareness and encourage active participation in waste reduction efforts.
One effective waste reduction strategy is composting, which involves the conversion of organic waste such as food scraps and yard waste into nutrient-rich soil. Facilities managers can also work with waste management vendors to ensure that hazardous waste is disposed of properly and in compliance with local regulations.
Another innovative approach to waste management is the use of anaerobic digestion to produce renewable natural gas (RNG) from food waste. This process not only diverts waste from landfills but also provides a sustainable source of fuel and fertilizer.
By implementing effective waste management strategies, facilities managers can reduce waste, lower costs, and promote sustainability in their buildings.
2. Renewable energy options
Facilities management can have a crucial role in both promoting and implementing renewable energy options. There are several renewable energy alternatives that can be considered for facilities management, including solar, wind, geothermal, biomass, and hydro energy. For example, solar panels can be installed on the roof or in an open area near the facility to generate electricity, while wind turbines can be a good option for facilities located in areas with high wind speeds. Geothermal energy can be used to heat and cool a facility, while biomass energy can be generated by burning organic matter. If a facility is located near a water source, a hydroelectric power system can be installed to generate electricity.
In addition to implementing renewable energy options, facilities management can also focus on reducing energy consumption through energy-efficient practices like LED lighting, HVAC upgrades, and insulation improvements. By adopting such practices, the facility can further reduce its reliance on traditional grid power and lower energy costs.
Renewable energy sources offer a clean and sustainable alternative to fossil fuels as they do not generate greenhouse gas emissions. These sources include solar, wind, geothermal, hydropower, biomass, wave, and tidal power, and they can diversify energy supply, reduce dependence on imported fuels, and create economic development and job opportunities. In addition to renewable electricity, there is significant growth in renewable fuels such as renewable natural gas, which can reduce Scope 1 emissions from the combustion of fuels in the transportation sector.
Integrating renewable energy into existing infrastructure is becoming easier and more affordable through credible contracts for the acquisition of renewable energy and fuels. However, it is essential to consider potential impacts on ecosystems, wildlife, and local communities. Vanguard Renewables, for instance, develops RNG projects on dairy farms that utilize dairy cow manure and local food waste to produce low-emission fuels, which not only lessens emissions but also invests in local communities and promotes circularity in sustainable food and energy systems.
Renewable energy options present a compelling opportunity for facilities management to reduce costs, increase efficiency, and decrease their carbon footprint. From solar and wind power to geothermal and biomass energy, there are various renewable energy sources available to organizations, each with their unique advantages and considerations. By incorporating renewable energy solutions into their operations, facility owners and managers can achieve long-term energy independence, build resilience, and contribute to a more sustainable future. As we collectively work towards mitigating the impacts of climate change, it is imperative for businesses to embrace renewable energy and integrate it into their operations wherever feasible, taking a leadership role in shaping a cleaner and more sustainable world for generations to come.
3. Reduction of water usage and waste generation
Proactive organizations are recognizing the benefits of waste reduction programs and paying greater attention to waste and water usage management. To design effective reduction strategies, it is essential to understand the sources and quantities of water and waste and track the amount and types of waste produced by your organization.
According to Smith, mechanical systems (HVAC, chillers), restrooms, food service operations, and landscaping are the main drivers of water consumption in commercial buildings. Additionally, corporate cafés can contribute as much as 3.8 pounds of waste per employee per day.
Darr notes that nationally, about one-third of food is wasted, contributing to greenhouse gas emissions when it ends up in landfills. Food waste is the number one item disposed of in landfills by volume. Facility owners and managers can take the lead in partnerships to ensure sustainable collection and management of food waste for facilities that provide space for the food service industry, have cafeterias for tenants, or large office space with significant numbers of employees. There are several options more preferable than landfills, and in some markets, strong composting programs can use food waste to generate soil amendments. It takes work by all segments of the food chain and economy to do better.
According to Caroline Vanderlip, CEO and Founder at Re:Dish, the issue of single-use packaging waste is significant, with as many as 1 trillion such items discarded across the US each year. Re:Dish works with companies to reduce their waste from single-use disposable food packaging. Their dishware-as-a-service program focuses on systematic and ongoing education and training to be successful, recognizing that changing user behavior can be challenging. Making reuse simple and habitual is crucial to changing behavior, and the program includes engaging with the company's 'green' group, implementing gamification concepts, and providing management communications at critical points. Initiatives such as HR onboarding are identified as key moments to set the stage, while surveys and focus groups are used to identify non-conforming behavior and understand any blocks to acceptance. The program's success relies on building in support and stakeholder buy-in and following a cadence of programs throughout the first 6 months.
Effective water usage and waste management are critical components of responsible facilities management. By understanding the sources and quantities of water and waste, tracking the amount and types of waste produced, and implementing proactive reduction strategies, organizations can significantly reduce their environmental impact while saving costs. With the increasing focus on sustainability and corporate responsibility, it is essential for facility owners and managers to prioritize water and waste management initiatives and take a leadership role in promoting sustainable practices throughout their organizations. By doing so, they can contribute to a more sustainable future for us all.
In closing
Corporate sustainability strategies aimed at reducing carbon emissions require engagement with stakeholders, including employees, customers, investors, and communities. To effectively engage stakeholders, Smith suggests creating employee-based groups known as sustainability champions, as well as utilizing gamification techniques when data is available. Darr emphasizes the importance of authenticity in stakeholder engagement, with clear goals and expectations that companies hold themselves accountable for, and transparency in reporting successes and areas for improvement.
To track progress and report on key metrics, companies must have the necessary tools and dedicated resources in place, including a team dedicated to sustainability reporting and monitoring standard changes, as well as supplier reporting through standardized systems like the Carbon Disclosure Project (CDP).
We discussed three crucial trends impacting companies prioritizing sustainability: carbon neutral and net-zero strategies, renewable energy options, and the reduction of water usage and waste generation. These trends are driving change across the industry and pushing companies to take significant steps to reduce their environmental impact. By taking bold action now, companies can better position themselves to thrive in the future.
In summary, successful implementation of corporate sustainability strategies requires engagement with stakeholders, authenticity in setting goals and reporting progress, and dedicated resources for tracking and reporting. Companies must also adapt to the changing landscape of sustainability trends to reduce their environmental impact and position themselves for future success.
References
1 – Microsoft. Corporate Social Responsibility – Our Commitments. https://www.microsoft.com/en-us/corporate-responsibility/sustainability
2 – Amazon Staff. (January 31, 2023). Amazon sets a new record for the most renewable energy purchased in a single year. https://www.aboutamazon.com/news/sustainability/amazon-sets-a-new-record-for-the-most-renewable-energy-purchased-in-a-single-year#:~:text=Amazon's%20purchases%20last%20year%20bring,new%20projects%20in%2011%20countries
3 – Google. (September 14, 2020). A Message from Our CEO - Our third decade of climate action: Realizing a carbon-free future.https://blog.google/outreach-initiatives/sustainability/our-third-decade-climate-action-realizing-carbon-free-future/
4 – United States Environmental Protection Agency (EPA). Overview of Greenhouse Gases. https://www.epa.gov/ghgemissions/overview-greenhouse-gases#:~:text=Carbon%20dioxide%20(CO2)%20is,gas%20emissions%20from%20human%20activities
