Ben Rouncefield-Swales explains how the way data is collated, organised and used holds the key to unlocking the net zero transition.
The built environment is directly responsible for 25% of the UK’s total carbon footprint, and therefore has an essential role to play in the transition to net zero. Naturally, organisations are all at different points on this path. But when coupled with the current economic climate, and the desire to cut energy bills as much as feasibly possible, reducing a building’s environmental impact is good for both the planet and a business’ bottom line.
So, why is data critical in achieving the golden state of net zero for the built environment? And how can better data help to deliver better businesses too?
Building for the future, now
Encouragingly, in the last two decades built environment emissions have fallen by around 30%. However, this is largely due to a reduction in operational emissions, most of which can be attributed to the rapid decarbonisation of the electricity grid in recent years. And while newly constructed buildings are more energy efficient, 80% of buildings in 2050 have already been built. Therefore, decarbonising existing sites must be a top priority, with data representing the best opportunity to accomplish this.
From wholesale prices to kWh on the meter, data is used to inform and manage every aspect of energy, from source to use. The ability to better collect, extract, validate, measure and manage data presents untapped potential for improving an organisation’s performance and processes.
One report from the UK government recently announced that the country is likely to miss its target for reducing carbon emissions to net zero by 2050 unless it puts in place credible plans. Tangible and accurate data holds the key to driving forward real action on this front.
Monitoring energy data enables decision-makers to understand how much energy a building is using (and where), the associated cost, and ultimately what can be done to reduce consumption and expenditure. This, then, allows trends and insights to be identified, from which the most efficient way of managing energy usage can be ascertained. Being able to pinpoint a building’s energy demands right down to peak usage times, tariffs in place at the time of use, and the total energy consumption, is the secret to powering the net zero transition for the built environment.
This goes hand-in-hand with the rise of environmental and social governance (ESG) reporting too. With organisations expected to report their emissions data under existing frameworks, detailing how they are minimising their environmental impact, it’s safe to say these expectations will only increase in the future. Worryingly, research by the Boston Consulting Group discovered only 9% of companies are confident when measuring emissions, with many respondents estimating an average error rate of between 30-40%. Given the scale of the net zero challenge, this is unacceptable. Access to better data is an obvious path to improvement.
Creating clarity from complexity
In order to move buildings closer to net zero, data integrity is going to be absolutely essential. When speaking of data integrity, this means it’s important to make sure data is complete, valid, up-to-date and consistent. Data should also be easy to integrate with other data sets, offer location intelligence for deeper insights, and must include context, nuance and meaning. Only by having data integrity can businesses ensure the sustainability goals being set are realistic and achievable.
Without data integrity, an organisation will not have a true picture of the environmental impact of a building. As a result, a company might commit to plans of action which are not only ineffective, but lack significant impact. And with ESG reporting becoming increasingly critical, providing inaccurate and unreliable data has the potential to backfire on a business and brand. Indeed, in a recent review, the Competition and Markets Authority found 40% of sustainability claims made online could potentially mislead consumers. The danger of ‘greenwashing’ – even if unintentional – is a very real risk, and could have serious repercussions if sustainable statements are discovered to be unfounded.
Conversely, companies that create clarity from data complexity will not only see the results on their bottom line, with considerably reduced costs, but be able to better contribute towards moving the needle towards net zero too.
Adopting a comprehensive and considered approach to data management is absolutely key to decarbonising the built environment going forward. The UK has a responsibility to embrace data as part of its collective mission, making buildings greener and smarter.
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