Taras Verkhoglyad
Sales Development Representative, Arloid Automation

Achieving net zero should be a priority for the Real Estate sector.

Carbon emissions is one of the major environmental issues of our time. As of 2022, the construction and operation of buildings worldwide accounts for the largest share, namely 40% of global carbon emissions. The carbon footprint that buildings leave can be categorized into two types. The first type is carbon emissions that occur during the construction of buildings. Many plants, factories, and many construction equipment, all this has a direct effect on the environment. The industrial sector accounts for 23% of hydrocarbon emissions per year. The second type is the use of energy by buildings such as lighting, heating, and ventilation systems. The energy sector accounts for 21% of hydrocarbon emissions every year.

The World Green Building Council has set key targets to ensure that every building achieves net zero emissions by 2050. Net Zero is defined as “a state in which we add no incremental greenhouse gases to the atmosphere.” The real estate sector should reduce the carbon emissions from building development, ownership, and maintenance, and offset the remaining emissions through carbon sequestration. The Net Zero strategy represents a valuable risk management opportunity for building owners. Nowadays, the real estate sector is one of the priorities for investment. But as statistics show that the climate dangers for this sector are growing every year, and by 2022, about a third of buildings may face this problem if they start working on carbon emissions and modernizing their buildings.

Buildings that work to reduce their carbon footprint are starting to be of more interest to investors and tenants. Firstly, buildings that work towards net-zero represent a more stable long-term investment in the real estate sector as they are less exposed to third-party risk and thus can diversify risks well. Secondly, it increases the interest of tenants who need to pay less but still have good quality. Due to high energy prices, tenants are increasingly being forced to move out due to skyrocketing rents that were not part of their plans. Smart net-zero systems installed in buildings are becoming an important factor for companies looking for new buildings to rent, as it will help them reduce risk and control building energy use more efficiently.

To achieve net-zero, the main things to work on are renewable energy, modernization, and responsible ownership. Renewable energy is a priority for the real estate sector as it is a great way to reduce your carbon footprint, make buildings more sustainable and potentially lower your energy costs. There is a huge amount of equipment on the market that help buildings use renewable energy sources. The most popular renewable energy technology is solar panels. Also recently, technologies that work inside buildings are gaining popularity, one of them is artificial intelligence which is built into the building management systems allowing for controlled energy consumption and increased efficiency. For example, artificial intelligence in the HVAC system will help reduce the bill for electricity by 30 percent, which with the current energy prices for some buildings will be very important. Modernization of buildings becomes a priority for all real estate managers as it increases the competitiveness of the building in the housing market. It should also be a major factor in reaching net-zero through the strategies set by countries to reduce carbon emissions by 2050. And of course, achieving zero emissions is a responsible approach to building management these days, as it shows people’s interest in fighting the environmental problems our planet is facing.

Arloid AI can help the real estate sector achieve zero carbon emissions faster by reducing and optimizing the use of HVAC systems and saving money on buildings. To start your net-zero journey, simply contact us by email or go through test calculations in the configurator on our website, where you can calculate how much you can save with Arloid.

Our office will be happy to answer any questions and tell you more about how your company can work towards your net-zero goals! Let’s take another step towards a greener future!

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