Under the “dual carbon” background, both domestic and international multinational companies are increasingly focusing on ESG development. Nowadays ESG is considered as an essential part of a company’s strategy.

Many Corporate executives recognize the importance of ESG strategies in enhancing competitiveness, reducing risks, and ensuring long-term stability. According to the “Deloitte 2023 Chief Executive Sustainability Development Report”

– Chinese executives prioritize addressing climate change more than the global average. In 2023, 55% of Chinese executives highlighted it as a primary concern, compared to the global average of 42%.

– In 2022, 87% of Chinese companies increased investments in sustainable development, surpassing the global average of 75%.

As we embark on the green path of ESG, let’s explore together the five key ESG trends for 2024.

Keyword One: Anti-Greenwashing

The ESG heat is growing, but it has also brought chaos and controversies. To tackle false “greenwashing”, the organizations are implementing policies to combat deceptive practices.

The European Union has introduced mandatory disclosure requirements for companies and financial institutions to promote sustainability. In China, regulatory authorities are focusing on enhancing ESG information disclosure for companies.

Aden has introduced the Akila digital twin platform to help companies comply with ESG policies. The platform, initially focused on ESG, uses artificial intelligence to monitor and collect real-time energy consumption data from buildings. It integrates this data into a single platform, providing transparent and visual ESG information for corporate managers. This simplifies and accelerates ESG development and ensures compliance with sustainability regulations.

Keyword Two: Digital Twin

Research shows that using digital decarbonization technology alone can reduce carbon emissions by up to 38%, leading to significant improvements in carbon intensity measures. Therefore, incorporating digitization is vital in planning for decarbonization.

Implementing digitization and intelligent upgrades in the construction industry is still feasible. While real-time data monitoring is not new, the challenge lies in connecting and integrating energy consumption data from different platforms. Moreover, many older buildings lack a focus on collecting energy data, making it a priority for managers to unify equipment data.

By integrating various energy consumption data and combining it with operational information, visualizing it on a single interface becomes easier for managers. This allows them to identify issues and understand trends more effectively, aligning with the core concept of intelligent building management – the digital twin.

Aden’s Akila platform revolutionizes intelligent decarbonization management by combining real-time data and digital twin technology. It offers comprehensive ESG solutions, providing in-depth insights and recommendations for enterprises. This platform helps achieve more efficient and compliant operations in energy consumption, carbon footprint, and sustainability.

Keyword Three: “Smart” Industrial Parks

The manufacturing industry is an important driver of China’s economic growth but also a major contributor to carbon emissions. In 2020, global carbon emissions reached 35 billion tons, with industrial manufacturing accounting for nearly a quarter, making it as the second-largest source after electricity, according to the International Energy Agency (IEA).

Given his, China’s traditional manufacturing industry must undergo a low-carbon transformation and prioritize ESG development. These challenges also present new opportunities. To help companies adapt to new policies, achieve ESG goals, and enhance their competitive edge, Aden Group’s industrial new infrastructure brand, NXpark, has emerged.

NXpark aims to assist manufacturing enterprises in creating smarter, more environmentally friendly, and human-centered industrial infrastructure. It focuses on designing buildings that can withstand extreme climate conditions, ensuring rapid delivery, and providing a financially convenient and flexible asset leasing model. Compared to traditional industrial infrastructure, the emphasis of new infrastructure is on technology, environmental friendliness, innovation, and empowerment.

Keyword Four: Energy Efficiency

The majority of people spend about 90% of their time indoors in cities. Around 40% of total carbon dioxide emissions come from buildings, mainly from technical assets like refrigerators, boilers, compressors, and HVAC systems.

Technical assets are important for both the environmental impact of buildings and the overall cost for building owners. One effective way to decrease a building’s carbon footprint is to ensure that all facilities, equipment, and structures are properly maintained and operate efficiently.

Aden’s Technical Asset Management (TAM) department offers comprehensive facility service solutions using digital technology to track and monitor the lifecycle and maintenance process of on-site facilities. It uses predictive maintenance for critical assets and optimizes their efficiency, helping buildings perform well and reduce their carbon footprint even over time.

Aden’s TAM services are available for various types of facilities, including factories, warehouses, commercial buildings, hospitals, and schools. It assists in operating, maintaining, and managing on-site equipment, which results in cost reduction, improved efficiency, and support for ESG development.

Keyword Five: Green Finance

By 2024, companies will further incorporate sustainability into their financial foundation. This means considering the sustainability of tangible assets and valuing intangible assets like goodwill. Many organizations are now creating ESG director positions to ensure the integration of ESG issues into operations and financial reporting.

This integration shows that sustainability and financial stability are not opposing goals. It drives the growth of sustainable investment and financing. More investors and financial institutions are paying attention to companies’ sustainability performance and using it to make investment decisions. This, in turn, motivates companies to improve their sustainability efforts to meet ESG standards and investor demands.

In 2024, ESG standards will be widely adopted globally and seen as opportunities rather than constraints for companies. It is believed that companies should actively turn external risks into business opportunities. By adopting sustainable and circular economic models, companies can reduce their impact on the environment and society while working towards long-term common goals.

Aden provides support to companies in their sustainability journey by integrating facilities, data, and resources to enhance productivity, adaptability, and ESG orientation. This helps companies achieve green sustainable development and create a future that is people-centric and beautiful.

In 2023, China’s largest 500 manufacturing companies made over 5 trillion yuan in revenue and assets, reaching a total of 50 trillion yuan. China’s manufacturing industry has transitioned from playing catch-up to leading the industry, with “Made in China” becoming a prominent international label.

However, China’s manufacturing industry faces challenges due to its strength. The industry’s growth, energy consumption, pollutant emissions, and carbon emissions from electricity use during production contribute to over 60% of the nation’s total carbon emissions. This hinders the industry’s sustainable development and harms the environment.

Additionally, the “carbon tariff” policy would make China’s manufacturing industry face a 26% average international tariff, which could lead to a 21% decline in exports and add more pressure on its export business.

One side of the challenge lies in environmental factors while the other in economic pressures.

Given the “dual carbon” situation, what hurdles does China’s manufacturing sector face in transitioning towards zero carbon emissions?

• Old factories have problems in optimizing and transitioning.

Old industrial factory buildings in China have many problems. They use outdated, energy-consuming equipment that is inefficient and rely on expensive energy sources like coal, electricity, gas, and oil. Meanwhile, factory workers also do not have awareness about saving energy and reducing emissions. As a result, it can cause difficulties in start transforming these old buildings.

• Expanding factories face challenges in achieving “Net-Zero”

Creating a zero-carbon factory or park requires a comprehensive approach. First, the project must leverage local zero-carbon practices. Second, it must consider emission reduction measures and sustainable development principles during the building’s lifecycle, including design, construction, and operation. Integrating “zero-carbon” and “intelligence” into the building’s DNA can significantly enhance the facility’s performance, finance, and environmental impact, which has affected the industrial park for several decades.

• Traditional industries have difficulties to consolidate and analyze the data

Manufacturing systems are complex, making it difficult to gather and analyze data on reducing emissions. Multiple manufacturing processes produce significant amounts of data, which may be located across various departments, sites, and even countries. This makes collecting, integrating, and analyzing the data highly challenging.

“New challenges create new opportunities.” – NXpark by Aden born in this era

Aden Group has launched its new brand called NXpark by Aden, to help manufacturing companies create sustainable industrial infrastructure.

The infrastructure is designed to be intelligent, eco-friendly, and flexible. It can also withstand extreme weather conditions. Also, the new infrastructure will be quickly delivered and available for leasing. It is different from traditional industrial infrastructure as it focuses on the use of technology, innovation, and empowerment, which will help companies achieve their environmental, social, and governance goals.

What NXpark can offer to support the manufacturing Industry’s “Net-Zero” Transformation?

Advantage 1: Comprehensive Integration of Akila Digital Twin Platform from Design to Operation

NXpark uses the Akila digital twin platform right from the project’s design phase. By combining Building Information Modelling (BIM) and Artificial Intelligence (AI) technology, it creates an intelligent and real-time digital blueprint for the entire industry park including buildings and utility infrastructure. The design approach prioritizes climate adaptability and net-zero targets, thereby creating a sustainable approach that benefits the environment in the long run. This approach also helps in reducing the long-term costs for facility owners and operators.

During the construction phase, the digital map ensures a more accurate supply of materials, reducing waste, and forming more optimized construction schedules, project management, and collaboration.

In the operational phase, the digital twin can monitor complete site operations, energy, and system data, optimizing the performance, reliability, and efficiency of industrial assets.

Advantage 2: Tailored Comprehensive Energy Management for Energy Efficiency Improvement

NXpark plans and utilizes clean energy for the park, precisely positioning based on the production energy demand, location of the park, and local climate conditions. It provides worry-free, efficient energy optimization management, including distributed wind power generation, flexible energy storage and microgrid scheduling, solar photovoltaics, geothermal/air-source heat pumps, helping enterprises reduce reliance on traditional energy sources. By using renewable energy, carbon emissions are reduced, energy usage costs are lowered, and sustainable development is achieved.

Advantage 3: Digital Decarbonization for Accelerated ESG Progress

NXpark using the digital twin platform, helps businesses overcome information silos, assess key ESG indicators from an operational perspective, track, predict, and alert for overall energy consumption and the performance of key equipment. Ensuring production continuity, it includes the following functions:

– Connecting interactive 3D models with real-time data collected from assets and systems through the Akila digital twin platform, presenting it visually for transparency.

– Real-time monitoring of carbon emissions on the factory site, integrating isolated and multi-line management systems into digital integration for optimizing factory operations.

– Through data aggregation and analysis, helping decision-makers better understand their carbon emissions and take appropriate measures to improve and reduce carbon emissions.

The industrial park invested and built by NXpark has achieved various international green building certifications during the design phase, such as the U.S. LEED, French HQE, and Chinese Green Building. NXpark’s Xi’an Faurecia project is the first industrial park project guaranteed for carbon neutrality by ESG insurance, providing continuous assurance for the net-zero performance of factory sites, supporting the continuous journey to net-zero for businesses.

Advantage 4: Design and Material Innovation, Breaking the “Stereotype” of Traditional Factories

– In response to high temperatures, NXpark’s building design emphasizes natural ventilation, smart use of “shade,” and rainwater collection.

– NXpark focuses on the operation and maintenance of HVAC systems to ensure indoor temperature comfort and rational energy use.

– In material selection, sustainable and durable building materials such as recycled steel and low-carbon concrete are chosen to ensure building safety and stability under extreme weather conditions.

Given “dual carbon” status, NXpark by Aden delivers a comprehensive digitalized industrial infrastructure, enabling your property to have a robust design and financial resilience in a highly competitive market. It can adapt to changing climate conditions, relying on Aden Group’s 25 years of industrial service experience and technical support provided by the Akila digital twin platform, NXpark drives transformation with both intelligence and green initiatives, empowering the upgrade of the manufacturing industry!

It is well-documented that supply chain is an enormous contributor to global warming, as well as to the plastics and waste crisis, and a range of other negative environmental externalities. Some estimates have put supply chain’s contribution to global carbon emissions as high as 60% when all Scope 3 contributions are factored in. This enormous environmental impact has not gone unnoticed, but to date, most public attention has focused on consumer-facing sectors such as retail, consumer goods and e-commerce.

However, at Aden we believe that increasing supply chain efficiency and decarbonization is a shared responsibility, and is just as much an obligation for B2B facilities companies such as ourselves. As a facility partner to +1,500 clients in the APAC region, and to remote camps from the far reaches of Indonesia to West Africa, Aden is responsible for complex domestic and international supply chains, providing a large volume of equipment, foods, non-perishables, chemicals and other goods to project sites.

On behalf of our clients, and indeed everyone who is impacted by today’s carbon and environmental crises, Aden is taking a hard look at its supply and procurement infrastructure, and setting out a roadmap for greater sustainability, accountability and transparency.

We will be communicating more about this program, and a number of other ESG and sustainability initiatives in the coming months, but in this blog post we will recap some of the key initiatives we have prioritized this year.

1. Reduce overall package waste through “big package” purchasing and biodegradable outer packaging

One of the simplest steps towards supply chain sustainability is simply finding ways to make purchases and ship in larger batches, which can dramatically reduce the overall volume of dry waste such as cardboard and plastics. Aden has begun an audit of its purchasing catalogue, identifying and replacing a wide range of items where big package options are feasible. We are also actively seeking out opportunities to purchase from suppliers who use biodegradables in their outer shell packaging.

2. Doubling our purchase of plant-based meats this year

Plant-based meats require 47-99% less land for production and generate anywhere from 30% to 90% less greenhouse gases on their journey from farm to fork. There is growing interest and innovation in the use of plant based meats, and Aden has committed to making sure that our food service contracts have a robust plant-based component. Even before this year, our IFM teams had partnered with leading companies, chefs and organization in the world of plant-based meats, and even opened a specialized plant-based canteen. This year, Aden IFM has achieved and maintained two times more purchase and integration of PbM into our food service offer, reducing our carbon impact in the food space.

3. Prioritizing direct sourcing from large-scale suppliers

Related to commitment one, Aden’s central distribution centers and teams in APAC and other global regions have committed to prioritizing partnership with large-scale suppliers, instead of more disparate small suppliers. This empowers our team to procure and supply a larger volume of goods with a smaller number of trips and kilometers covered, directly reducing our Scope 3 carbon emissions. In addition, these partnerships also allow us to secure more reliable supplies and control of operational costs, while enabling more traceability and transparency on purchases.

4. Reduce food miles and investing in communities with local purchasing policies

While are prioritize large-scale suppliers (Commitment 3), we are also making room for local purchasing policies on perishable food items like produce. This is an especially important initiative in our remote site projects (we are the IFM partner to +30 remote camps in Indonesia alone) where we are serving hundreds or thousands of camp employees. By establishing local purchase policies in these categories, we are able to build better ties with the local community while reducing the food miles required in procurement for our camps.

Next steps

The policies outlined here are by no means the final word on our efforts to build a more sustainable supply chain in Asia and worldwide. Rather, it is an indicator of checkpoint of progress on Aden Group’s and the IFM and Supply Chain teams’ efforts at contributing to net-zero. As we pursue these initiatives, Akila and other Aden Group teams are also exploring a number of initiatives in targeted software and partnerships for procurement, waste management and emissions/GHG tracking, which will enable deeper digitalization and measurement of supply chain sustainability and progress towards net-zero.

EHS, HSE… if you don’t know the topic well, these acronyms can sound rather cold and clinical. But in fact, EHS is fundamentally about the things that matter most in business and in life. Put in shortest simplest terms, EHS means the following:

• E (Environment) – making sure your site isn’t harming the planet and surrounding area through an accident or negative externalities such as pollution from daily operations
• H (Health) – making sure operations are not making your people sick
• S (Safety) – making sure that accidents don’t take your people to the hospital (or worse yet, to the cemetery)

If you work in Technical Asset Management, energy management, or a range of other specializations where critical assets and utilities are at play, you will surely know these letters by heart. But for the non-specialists out there, or those wanting a quick refresher on the fundamentals of EHS, Aden has created this short primer on a topic that is truly central to the well-being of your people, planet and profitability.

What is at stake with EHS?

In short, the whole viability of your business and budget. When it comes to EHS, the stakes are incredibly high in both the short and long term. At the most obvious level, the health and well-being of individuals inside and near to your site is on the line. This is a cost which can hardly be quantified from an ethical standpoint, although the financial liabilities certainly can be measured and often becomes staggeringly high.

Many companies have learned the hard way that the cost of even one day’s work disruption can quickly compound and burn through a whole year’s maintenance budget in the space of a few hours. And if facilities are shown to be damaging the surrounding environment, massive penalties or even closure are likely to follow. Beyond this immediate threat, companies face the related costs of repairing damage, dealing with claims and penalties, as well as the long-term reputational harm that quickly accrues negative media attention and word of mouth.

Is there a difference between EHS and HSE?

Not a bit. This is a common source of confusion but in fact EHS means Environment, Health and Safety, while HSE means Health, Safety and Environment. In other words, they are two formulations of the same pillars, all of which ensure best practices for long term business viability and sustainability.

What are the most common types of EHS incidents?

EHS incidents can take many forms, depending on the industry and nature of work. However, some types of incidents are more common than others. Here are a few examples:

• Workplace Accidents: These are often the most readily recognized EHS incidents. They can include falls, equipment-related accidents, and other injuries that occur during the course of work.
• Occupational Illnesses: These are health issues directly related to workplace conditions or practices, such as repetitive strain injuries, hearing loss from excessive noise, or illnesses related to exposure to harmful substances.
• Environmental Incidents: These incidents involve harm to the environment due to business activities. They can include pollution (air, water, or soil), improper waste disposal, or the excessive use of natural resources.
• Chemical Incidents: These occur when hazardous substances are released, posing a risk to health, safety, or the environment. They can result from spills, leaks, or improper storage or handling of chemicals.

Do most EHS incidents come from deliberate neglect by the company?

In fact, no. Much more often, companies realize too late that their HSE practices were less secure than they had understood them to be.

A leading source of this issue is the lack of commonly accessible service history and work orders, a liability that is best remedied by backing operational teams with the proper tools and strategy for systemic digitalization. Common HSE breakdowns occur around these points:

• Reliance on paper-based systems: Gaps in servicing and work history easily go unnoticed either because a specific document has been damaged, gone missing, or cannot be easily searched.
• Data swamp: Too much information and too many spreadsheets make it nearly impossible to track service history and potential HSE issues. Note that the same can happen with a shiny new digital CMMS if your systems are not set up to record asset-by-asset each piece of equipment’s individual performance and servicing history and other key data.
• Silos between teams: Often enough, two teams both think “the other guys” have covered an aspect of HSE and lack the digital tools and communications system to recognize a gap.

So are there neglectful companies? Yes. But far more often there are companies that “don’t know what they don’t know”. This is one more reason having a centralized HSE and technical services partner can be such an important aspect of securing your core assets’ safety and reliability.

How does a good EHS policy support ESG and other compliance requirements?

Another acronym enters the stage, with a confusingly similar name… Environmental, Social, and Governance (ESG) criteria are a set of standards socially conscious investors use to screen potential investments. They consider how a company performs in terms of its impact on the environment, its relationships with employees, suppliers, customers, and communities, and the quality of its governance practices.

A good EHS policy directly supports ESG criteria by minimizing environmental harm, promoting a healthy and safe workplace, and demonstrating good governance. A great EHS policy systemically collects, structures and reports all data relating to EHS so that companies can achieve near automation in this reporting, and consistently validate their measures and progress towards optimal EHS practices.

Of course, ESG is only one of the frameworks companies are moving to report. In addition to this, any group operating in the APAC market will face a range of local and national compliance requirements, all of which can be met through this same approach.

What is Aden’s MEGA SAFE program and how is it supporting EHS?

Aden generally, and its Technical Asset Management team especially, have been laser focused on EHS for some time, with all members required to complete mandatory and ongoing EHS training, and dedicated EHS management in place for our national teams.

Our core beliefs can be summarized as follows:

• In the modern work environment, HSE is a non-negotiable.
• An aggressive focus on HSE best practice is something we owe to our employees, our clients, and society.
• Work performance and work safety go hand in hand and develop in every team member a greater sense of ownership, commitment, belonging, and attention to detail.

This year, with Aden’s volume of Technical Asset Management business growing fast, we have updated our HSE policy and kicked off a campaign we are calling Mega Safe at Aden. For us, MEGA stands for “Make EHS Great, Always” a simple and fun way to remind everyone our unshakeable commitment.

With a refreshed commitment to both core best practices and advanced applications of our digital platform, we are rolling our Mega Safe as a blend of SOP updates, on-site audits, trainings for staff and clients, and, of course (!) digitalization to enhance standardization, alignment and accountability at all levels.

In 2023, global awareness of the climate crisis has never been higher. This has been hammered home by a continuous and alarming spike in environmental catastrophes including fires, droughts, floods and climate-related displacement, as well as rapid decline in biodiversity and other metrics of environmental health. In the APAC region, the need for action is being advanced at the governmental, market and consumer levels through major policy commitments such as China’s net-zero 2060 agenda, and the growing centrality of ESG investing and green funds.

With climate action on the agenda like never before, there is a growing focus on the way buildings, their energy-consuming systems and servicing are contributing to the climate crisis. In fact, the built environment has been rated the top global contributor of carbon, responsible for 40% of all C02 emissions when their total lifespan from construction to operation and decommissioning are factored in.

Leading action on climate, then, means getting serious about optimizing the way buildings are managed. This requires a new approach to facilities management, taking a more holistic approach in which all systems and their data are linked for optimization and the built asset is managed from design, through construction and operation. The tool enabling this change will be building and operational data, collected and centralized in a single source of truth. This includes a number of inputs, including:

•  BIM modelling from the design, engineering and construction phase of a facility
• Data collected from pre-existing facility systems such as BMS
• Data collected through digitalization of the tools and processes technicians and service staff use on-site
• Automated data collected through sensors, covering areas like asset performance and energy consumption

Understanding the built environment as a contributor to climate change

First, a simple question: what is the built environment? In short, it is a collective term for human made physical structures and the complex infrastructure created to access them, service them, and make them both functional and comfortable for the people who use them. So, the built environment could be a single factory, or a full industrial park; a single office tower or a city district, a hospital or full retirement community, and so forth.
The built environment also must be understood as more than the physical shell of a building – it is also the complex network of utilities, assets and systems which enable it to function including large networks for energy consumption and circulation of heat, gas, water and air. As renewable energies technologies advance, the built environment increasingly integrates building-level hubs of energy generation, storage and distribution (commonly known as a micro-grid)

Finally, it must be remembered that the built environment has an extremely long lifespan, encompassing design, construction and operations, with an commercial properties averaging 70 years of functional use in many countries. As such, maintaining optimal efficiency and performance is critical to the reduction of carbon emissions

By the numbers: how buildings are impacting the environment

While not a comprehensive list, the following ten statistics give some indication of how much is at stake I the proper servicing and optimization of the built environment:

• The embodied carbon emissions from the construction of new buildings are equivalent to approximately 11% of global greenhouse gas emissions. (World Green Building Council)
• The total value of waste generated by the construction and demolition industry globally is estimated to be between $410 billion and $460 billion per year. (IFMA)
• The energy consumption of buildings globally is projected to grow by 50% from 2018 to 2050, with CO2 emissions from buildings increasing to 5.3 GtCO2 by 2050. (McKinsey)
• The operational energy used by buildings is responsible for approximately 28% of global energy-related CO2 emissions. (Global Alliance for Buildings and Construction)
•  Green building retrofits can reduce building energy consumption by up to 50%, and retrofits of existing buildings could reduce global greenhouse gas emissions by up to 1.5 GtCO2 per year. (IEA)
• The use of smart building technologies such as automated lighting and heating systems could reduce global building energy consumption by up to 30%, saving up to $1.2 trillion in energy costs by 2040. (World Economic Forum)

The new glossary of sustainable frontier: net-zero, climate resilient and climate regenerative
As the environmental crisis drives major change in the way buildings are managed, new concepts and ambitions for buildings are emerging. These will be key components in the ongoing decarbonization of the built environment, and achieved through a comprehensive reworking of BIM-based design and construction; new materials; digital twin technologies for advanced simulation, space optimization and data centralization; asset-centric O&M; micro-grid; and more.

Net-zero facilities

Net zero facilities are buildings that produce as much energy as they consume, resulting in a net-zero carbon footprint. These buildings are designed to be energy-efficient and use renewable energy sources such as solar, wind, and geothermal energy to generate their own electricity and heat. Net zero facilities can also utilize energy storage systems to store excess energy for use during times when renewable energy generation is low. By generating their energy, net zero facilities can help to reduce the carbon footprint of the built environment and help mitigate climate change. These facilities are becoming increasingly popular as organizations strive to achieve sustainability goals and reduce their environmental impact.

Climate resilient facilities

A climate resilient building is a structure that is designed to withstand and adapt to the impacts of climate change. These buildings are constructed with materials and systems that can withstand extreme weather events such as floods, hurricanes, and heatwaves. Climate resilient buildings also incorporate features such as energy-efficient designs, natural ventilation, and green roofs that can help to reduce the building’s carbon footprint and improve its overall sustainability. In addition, they can also provide a safe haven during natural disasters and help to minimize the disruption caused by climate-related events. As the impacts of climate change become more severe, the need for climate resilient buildings is growing, and they are becoming an increasingly important part of sustainable development.

Climate regenerative facilities

Climate regenerative facilities are buildings that are designed to not only have a minimal environmental impact but also actively contribute to improving the health of the planet. These buildings are constructed using sustainable materials and are designed to be energy-efficient and carbon-neutral, with a focus on reducing greenhouse gas emissions. Climate regenerative facilities also incorporate features that help to support the local ecosystem, such as green roofs, rainwater harvesting, and natural landscaping. These facilities can help to improve air and water quality, reduce urban heat islands, and promote biodiversity. By using regenerative design principles, climate regenerative facilities can help to create a built environment that actively supports the health of the planet and promotes long-term sustainability.

From commitment to action

While the battle is far from won, all of the opportunities and breakthroughs listed above are viable, actionable and achievable today. Aden Group has already assisted clients in achieving substantial decarbonization, performance and efficiency gains, as well as the construction and implementation of micro-grids and net-zero facilities in Asia. Powered by its digital platform Akila, and its portfolio of industry specialist teams and businesses, Aden Group is able to deliver facility optimizations that enable better ESG performance, environmental compliance and wellness outcomes for building users.

If you are interested in learning how to reduce your facility or portfolio’s carbon and environmental impact, don’t hesitate to contact us for a meeting and assessment of your needs.

Economic development depends on the mining industry to a large extent. Extensive exploitation of fossil fuels and strategic minerals like lithium and bauxite has enabled incredible growth across the value chain for everything from plastics to EV car batteries. While this leads to a better quality of life – especially for developing economies – the resulting damage to the environment is bad enough that it may do the opposite.

Soil erosion, water contamination, ecosystem disruptions and air pollution are all existential threats to human well-being caused by the mining industry. Solving these issues is one of the most fundamental problems facing sustainable development today.

Many nations have begun to adopt more comprehensive and rigorous standards around mining. In China, the world leader in mining metals and minerals, the 14th five-year plan has singled out green mining as a strategic goal. Internationally, markets are regulating themselves using ESG standards, calling on companies to follow various principles at the governance, social and environmental levels. Globally, consumers are also awakening to the fact that reducing human impact on the environment is one of the most important issues of our time. They are holding businesses more accountable for their actions through spending and investment choices.

But how can the mining industry balance economic development and environmental protection?

Smarter mines and mining operations

Meeting both the operational goals of the mining industry and the compliance standards set to be more sustainable can only be done with a thorough digital transformation. Networking, data processing and automation technology can optimize the groundwork and administration of mining sites to extract resources with minimized disruptions to the surrounding ecosystem.

Some of those solutions are as follows:

• Mining automation systems: used to integrate real-time data collection with AI-driven processing power
• 3D simulation & digital twins: the dynamic real-time display of mining work and personnel that can also run AI-backed simulations to help plan operations to be more efficient. This can also be used for camp management to optimize living spaces, equipment performance and energy use.
• Cloud-network integration technology: Integrate the Internet of Things and cloud computing to realize intelligent identification, positioning, monitoring and management functions.

Creating a smart mine makes progress on both fronts: it optimizes operations and makes them more sustainable in the process. The key to improving the environmental impact of the mining industry is creating a solution that allows businesses to still perform at their best. However, there are still steps for mines to take at the operational level to improve their environmental impact.

Material and resource efficiency

Mines of course do not only extract lots of resources from the earth, but they also use lots of resources to operate in the first place. Keeping a mine operational requires large amounts of electricity and water, both of which result in waste in the form of emissions and wastewater. Rethinking energy and waste management can easily reduce the environmental impact of mines.

Solar panel installation at IAMGOLD’s Essakane mine 

Energy management at mines

The old way mines powered to their sites was by plugging into the grid and running equipment on diesel fuel. The burden on the grid was enormous and would produce emissions depending on the local energy mix (coal, petrol, natural gas). Diesel, used by equipment and vehicles, is also a major contributor to carbon emissions. Both of these factors can be addressed with decentralized energy infrastructure.

Mines that construct a local grid can opt for clean energy sources in the mix, rather than stay reliant on coal power. Solar panels are easily installed on roofs and can also be constructed on surrounding land to send clean energy to the mine. Depending on the size of the project, it may even be suitable to build wind turbines. Pairing these renewable energy resources with battery storage will allow the site to produce and store clean power for consistent use in its electricity mix.

For vehicles on site that are using diesel – opting for electric would be a better method to reduce environmental impact. Electric transportation and material handling vehicles are widely available at this point and can replace a large chunk of fleets at mines. Furthermore, for mines with a clean energy mix, EV charging can be directly hooked up to the microgrid which means they are running on renewables.

Water management at mines

Mines that pump in fresh water with no plan on how to manage it wind up creating thousands of gallons of wastewater a day. Often, this is then pumped out to evaporation ponds surrounding the site. The ecological impact of this practice is obvious, as freshwater is now one of the most precious resources on the planet. But wastewater can also leave behind harmful chemicals that seem into the groundwater, leaving lasting negative impacts on the people and animals in the area.

Moving towards a better water management practice, such as recycling water can reduce the amount of water needed in the first place and eliminate the need for so many evaporations ponds.

Mining is still one of the most important industries worldwide to keep economies moving. They create value at every level of operations and across the supply chain, providing the resources to drive economic development. Ultimately these resources are meant to improve the quality of life for people around the world, but the challenge is to ensure that the trade-off does not create even more problems in terms of environmental damage. Green and sustainable mining is achievable using technology and the commitment of industry leaders to adopt practices that minimize pollution and emissions.

A carbon footprint is the total amount of carbon released into the air by an individual, organization, or community. It considers all activities and processes, such as transportation, operation and consumption of goods. It is no surprise that buildings (industrial, commercial, and residential) account for 40% of global emissions today.

As more and more focus from governments, institutions and the public goes towards reducing global carbon emissions, buildings can no longer remain such big polluters. Now this is not necessarily a choice, with governments enforcing low-carbon initiatives through policy and investors encouraging corporate boards to reduce carbon through ESG-based investment. Even employees and occupants of buildings are playing a role, demanding that their workplace be more environmentally friendly.

The carbon footprint of a building stretches back to the design phase and continues through construction and operation. At every stage, there are decisions that stakeholders can make that set the building on a path towards a lower overall carbon footprint.

Here are five key strategies to reduce carbon footprints in the built environment:

Start low-carbon planning early

For new buildings, the best opportunity to reduce their carbon footprints is to begin by evaluating and measuring the carbon impact of the building design. At this stage, building designers, architects and engineers can plan for optimal floorplans, layouts, materials, sourcing, and timelines that will contribute to reduced carbon footprints at the construction and operational stages of a building. As the design progresses and planning for building systems and utilities gets added into the blueprint, there are even more opportunities to design for smaller carbon footprints.

Building stakeholders need a complete life-cycle assessment of a building, accounting for all the flows in and out of the building system — including energy, water, materials, waste, etc.—to calculate its environmental impact. Such inventory data can specify and quantify the environmental impact of each sector of the building’s operation.

Many different rating systems provide standards for green building design. There are international standards such as LEED and country-specific standards like China’s 3-star System and Singapore’s BCA Green Mark Award. One of the best ways for new projects to start on the right low-carbon footing is to follow guidelines set out by these standards. However, existing structures still have many options to get on top of their emissions.

Properly maintain carbon-heavy equipment

One of the most effective ways to reduce a building’s carbon footprint is to ensure that all equipment and structures are adequately maintained. Building utility optimization (HVAC, electric, etc.) is essential for reducing the energy input needed to keep your building operational and comfortable.

Regular inspection and maintenance of HVAC systems, air-compressors, and electrical room equipment work to reduce carbon footprints in several ways. First, it can ensure these systems are running efficiently – meaning no leaks or flaws are causing the system to work harder (using more energy) to reach baseline performance. Second, it will reduce the need for replacements, reduce spending, and avoid creating more carbon costs inherent in the production of new materials, transportation, and installation.

A building with a proper maintenance plan reduces the amount of grid power it needs and directly reduces its contributions to carbon emissions while keeping equipment running longer reduces secondary carbon impact.

Low-carbon workplace management

A low-carbon facilities management plan should involve ways to cut emissions from both hard services and soft services. Buildings and workplaces can reduce carbon footprints not only through better equipment and system controls but also by creating a more sustainable workplace through administrative, technology and office amenities management.

Go paperless

According to statistics, 50% of commercial waste is paper. Many businesses have adopted a paperless office policy, which has greatly reduced overall generated waste. For example, replacing one paper letter with an email can reduce carbon dioxide emissions by 52.6 grams. Paperless offices reduce carbon impact by scaling down the demand for paper production, but also by reducing the transportation needed to move the waste to a landfill or recycling plant.

Maintain and recycle office electronics

Electronic products are essential to office operations, but they are constantly in a state of iteration and upgrading. Both personal and office consumers tend to regularly replace and upgrade outdated electronic devices such as mobile phones, computers, and tablet computers, but this is also stressful for the environment. Most of the e-waste generated around the world comes from small electronic devices, most of which are sent to some developing countries for disposal (i.e., shredding, incineration and dismantling), producing emissions that are harmful to humans and the environment.

With the idea of reducing carbon footprint in mind, office managers should first determine if they need to replace their equipment, or if what they have now will work for a while. If replacement is necessary, electronic waste needs to be recycled appropriately. By recycling 20 pounds of electronics, your building can save 52 pounds of contributed carbon dioxide emissions.

Opt for sustainable catering and food service

Many offices, industrial facilities and remote sites provide food services for employees, guests, and occupants. The choices that they make regarding the type of food they serve and how they source it can have a significant impact on their carbon footprint. To offset this, the managers of canteens, cafes, or pantries at a workplace can scale back the amount of meat on their menus and try to source as locally as possible.

The public is increasingly aware of the impact of industrial meat production on the environment. Factory farming for livestock accounts for 80% of the earth’s agricultural land and 27% of clean water sources, while only accounting for 20% of the world’s supply of calories. Beef farming and production consume 50 times more water than plants, while global livestock produces about as many greenhouse gases as all the cars, trucks, planes and ships on earth combined. Replacing some protein on menus with plant-based protein can therefore reduce the carbon footprint of your facility.

The supply chain for food likewise can take a toll on overall carbon impact. Even beyond the fuels used for transportation, there are factors such as refrigeration and climate-controlled greenhouses necessary for out-of-season produce. Eating locally and seasonally can reduce the carbon footprint of your food by around 10% and is well worth planning menus to do so.

Waste management

Proper waste management can bring value from the three dimensions of sustainable development: environmental, economic and social. In terms of the environment, waste management can reduce environmental impacts on groundwater and air and reduce the threat to ecology and communities. Identifying byproducts or waste with some resell value can also be a source of income. A more holistic approach to managing waste, however, also reduces carbon emissions.

Having a robust recycling and reuse program cuts down on the need to produce more materials, and therefore the emissions inherent in that process. It also reduces the size of landfills – one of the largest sources of methane (another greenhouse gas) released into the atmosphere. Adopting a disposal strategy that cuts down on the need for pick-ups and transportation distance will also cut the emissions caused by (usually) diesel-burning vehicles.

Reducing waste is extremely important because how it pollutes air, water and soil damages local ecology and can hurt communities that depend on the environment near production sites or landfills. However, it is equally important as a way to reduce a facility’s contribution to carbon emissions as well.

Digitalization

Digitalization is one of the most effective ways to reduce carbon footprints because it creates the transparency necessary for optimizing carbon-saving operations. From building design to maintenance to waste management, the centralization of a building’s data and processes in a single source of truth enables businesses to reduce carbon footprints more effectively than ever before.

With a mix of hardware (sensors) and software (AI, data processing), a smart building is not only capable of streamlining day-to-day operations but can automate many processes as well. For example, data-driven maintenance can automatically remind relevant responsible persons to conduct timely inspections and assign tasks appropriately, while digital systems can track and collect data and generate reports on maintenance activities and costs.

Most importantly, a smart building gives every party from upper management to building managers and technicians the power to operate their facility in a low-carbon way.

IFM, integrated facility management, is a one-stop solution that brings together asset and equipment maintenance, workplace experience services, supply chain management and more. Because IFM operates in the built environment, from factories to office towers, it influences the overall business operation, which then impacts the economy and environment. It has a direct, effective and visible impact on a company’s ESG performance.

ESG is an investment concept and global standard that focuses on how businesses operate regarding the environment, society and their internal governance. Based on ESG evaluations, investors can assess the overall contribution of a given company towards sustainable development and responsible social practices. Companies with a higher rating carry less investment risk, as they are more likely to remain compliant with environmental regulations and employment policies.

ESG was born out of necessity; it is proactive, forward-looking risk management established upon the planning for real and emerging issues. As IFM spans nearly every industry and business sector and involves operations that touch on a variety of ESG factors, done well – IFM can be an engine to boost ESG performance.

Environment

The “environment” in ESG generally covers corporate practices relating to climate impact, environmental protection, waste prevention and control, green technology, renewable energy and more. In the built environment, it involves carbon emissions and pollution. Co2 emissions produced by the built environment account for approximately 40 percent of total global emissions, 90 percent of which is generated during the actual operation of the facilities (as opposed to construction).

For any company of scale, a corresponding carbon reduction strategy is indispensable, so in what ways can IFM add value to these strategies?

ESG management dashboard in Akila

HVAC optimization

At present, the technology and market development trend of HVAC mainly focuses on energy saving and low consumption, as well as the application of new equipment and technologies such as solar energy, air and water source heat pumps, and energy storage. Digitization is driving HVAC optimization. Innovative technology like IoT and AI is upgrading traditional systems to achieve higher heating and cooling efficiency with lighter environmental impacts.

Smart energy management

In building operation and maintenance, monitoring energy consumption is essential. Building managers need to look at overall energy used as well as consider variables like price fluctuations and weather to plan and predict how to conduct operations in a way that optimizes use and conservation. Meeting energy efficiency targets is core to better ESG performance, but proper management of the energy-using assets themselves is necessary to maintain operational efficiency. A holistic approach to smart energy management needs to integrate a preventive and predictive maintenance plan to avoid unnecessary energy waste in the daily building operation.

Sustainable supply chain

A key aspect of ESG ratings is ensuring compliance throughout the supply chain, which requires proactive supplier and vendor management. There are four key features of sustainable supply chains – low carbon, low waste, social responsibility and transparency, which can reduce costs and risks while creating value. Regular evaluation of your supplier’s impact on the environment is needed to maintain higher ESG ratings. 

Digitalized waste management

Waste treatment and management have a complicated governance structure, but digitalization offers improved transparency. Through the application of digital software systems, the integrated collection, reporting and sharing of data offers full life cycle supervision of waste. With deeper analysis, businesses can make more educated and comprehensive action plans to address waste production and treatment. IoT, AI, blockchain and other advanced technologies are being used to digitalize waste management, reducing the complexity, difficulty and danger of improper waste practices, and optimizing governance capabilities.

Localized catering services

Companies that provide on-site food service have to consider a multitude of environmental factors that come from food; ESG metrics will encompass the energy used and waste produced from food service. It will also involve sustainable sourcing – what is the environmental impact of your suppliers and the transportation used to deliver it to your site. 

Cooperating with local suppliers to achieve centralized food purchases can reduce related emissions and pollution and help companies reduce their carbon footprint. Closer proximity to a supplier also offers more transparency into their operations, with site visits as a possibility. Paired with digitalized waste management, on-site catering done the right way can boost ESG compliance. 

Social

The social requirements of ESG standards measures how a company contributes to society, and IFM is naturally inseparable from it. Office occupancy and overall employee satisfaction are two of the key areas measured by ESG standards, and good facility management is integral to performing well on those fronts. A better workplace experience provided by IFM will directly improve scores along with ESG social metrics, and at a secondary level, help contribute to employee retention.

Some of the ways that IFM contributes to a better workplace experience are:

• Improving the energy efficiency of buildings and facilities can create more comfortable workplaces;
• Proactive air quality monitoring and excellent indoor air quality contribute to employee health;
• Adopting an eco-friendly, local, innovative catering service strategy.

It’s not just the policies of the business that affect ESG social scores. Because an IFM provider is part of the supply chain, the IFM company itself must adhere to proper ESG-compliant employment practices, such as fair hiring and pay.

Investing in good IFM is one of the best methods to improve ESG social ratings. Building a better work environment with an ESG-conscious IFM provider can significantly increase employee wellbeing and ensure a more positive social impact.

Governance

Corporate governance in facilities management comes down to transparency, trust and ethics. Businesses and IFM providers must work closely to set a structured, sustainable commercial building operation model. A tech-driven IFM solution improves efficiency, optimizes resource utilization and saves time. It also helps companies better comply with ESG guidelines.

Digital transformation places data at the core of corporate business governance and workplace data management is crucial. Today, workplace and facility data systems make corporate governance an actual reality, and the rationalization of facility management processes is supporting the other two pillars of ESG. IFM that strives to be fully digitalized is an IFM that places compliance and transparency at the center of its foundation.

Achieving a low-carbon energy infrastructure is a top priority for many countries to combat climate change or reduce pollutants that harm air quality and local ecology. Growing demand for low-carbon development will drive up the construction rate of renewable energy resources and lead to more comprehensive carbon emissions policies. In China, where energy demand is still growing, the primary balancing act is how to transform energy infrastructure to have a smaller carbon footprint without suppressing energy demand.

The key has been to act quickly to build renewable energy capacity and make policy decisions that encourage the development of decentralized renewable energy infrastructure. Although this is a challenge, it is also an opportunity in the Chinese market. Developing renewables helps to decarbonize the grid and brings new employment opportunities and a refreshed momentum for economic development and social transformation.

For China to achieve its “dual carbon” goals of peak emissions by 2030 and carbon neutrality by 2060, the renewable energy industry, driven by developments in wind and solar power, boasts huge potential to achieve these goals while also boosting the economy and ecological recovery.

Wind & solar power

China’s push for decarbonization will involve a broader approach that includes the build-out of nuclear energy, hydroelectric, and ultra-high voltage transmission lines. However, the bedrock of its energy transformation is wind and solar power. Wind and solar power installations can be built quicker and decentralized. Decentralized renewable energy is when businesses (or individuals) install renewable power generation directly on their property, which can in turn power their buildings. If those assets produce enough power, they can even sell the excess energy back to the grid. Both centralized and decentralized renewable energy play a role in pushing towards a low-carbon future.

Wind Power

China’s onshore wind energy resources are unevenly distributed. Currently, wind farms are mainly located in Northern China, in areas that are sparsely populated and do not have significant local demand. But in economically developed regions, such as the eastern and southern regions, which account for more than 70% of electricity demand, wind energy resources are scarce.

Furthermore, the geographic requirements for wind turbines to be most effective makes it difficult to achieve wide decentralization.

Solar power

Every year, the cost of producing solar panels decreases. Today, the price of solar panels is even more competitive with coal and natural gas. At the same time, the development of new technologies and materials is constantly improving the efficiency of photovoltaic conversion. Furthermore, China’s photovoltaic industry has a full capacity up and down the entire industrial chain from upstream high-purity crystalline silicon and midstream high-efficiency solar cell production to the construction and operation of photovoltaic power plants. The Chinese solar panel market already has a well-developed value chain as well, including key intellectual property rights.

Solar energy is also a much more flexible source of green power, with application scenarios including large, centralized power stations, commercial or industrial rooftops, or off-grid power for people in remote areas. Providing reliable solar electricity does face a few challenges – namely instability due to weather and cloud cover. However, there are already a variety of solutions in existence or development, such as energy storage, solar thermal power plants, and intelligent photovoltaic generators.

Bolstering public works with policy

While the industrial capability to build out renewable infrastructure is a major part of reaching a low-carbon grid, it is not the only tool in the arsenal. Pushing businesses to take responsibility for their contributions to emissions is also a core part of the decarbonization strategy.

Last year, the National Energy Administration announced a list of pilot zones for county-wide solar panel roof installations, involving 676 counties and cities. In 2021, China’s new PV installation reached 53GW of capacity, generating 29GW, accounting for about 55% of new energy generation in the country, which for the first time accounted for more than half of the new generation.

On April 1 this year, China rolled out its first mandatory code for carbon emissions in buildings, the General Code for Energy Efficiency and Renewable Energy Use in Buildings, which sets higher requirements for the use of renewable energy, and new building complexes and buildings must also contain planned usage of renewable energy. The code requires new buildings to install solar energy systems and establishes detailed requirements, including the minimum lifespan for solar thermal collection systems (15 years), and photovoltaic modules in solar photovoltaic power systems (25 years).

Solar energy & ecological restoration

In the context of economic development, Chinese officials often evoke a deep concern for nature as well: “lucid waters and lush mountains are invaluable assets.” This means that the overarching approach to promoting energy transformation and improving energy structure is not only to stimulate rapid economic and social development but also undertaken to protect the environment and hurry the repair of the ecology that has been damaged.

In recent years, China has taken an initiative to revitalize the environment around abandoned mines, attempting to restore the immediate areas around the old mine through ecological restoration, land reclamation, landscape preservation and reconstruction, reuse of abandoned mines, and construction of national mine parks. These sites are also being used to construct solar power installations – turning a once desolate area into a generator of clean energy.

The construction of solar power plants on some abandoned mines makes full use of the deserted mine sites. Many of the largest mining areas suffer from soil erosion and desertification, as well as damage to vegetation. Photovoltaic power plants, when installed in these areas, can promote soil restoration, prevent further soil erosion, and restore local ecological damage to improve ecosystem functions.

Meanwhile, photovoltaic projects can also be integrated with agriculture, fisheries, tourism, and other sectors to achieve cross-industry development. In Datian, Fujian Province, there is a “terraced field” created by solar panels installed on a former agricultural site. In Houshe coalmine in Shangjiang, a similar project was undertaken to reuse abandoned fields, warehouses, courts, coal platforms, sheds and other lands.

Transforming areas in a state of disuse into a new generator of renewable energy revives abandoned work sites without needing to develop a separate, untouched plot of land.

Decarbonization is not a choice

China has committed repeatedly to its “dual carbon” goals of peak carbon and carbon neutrality and encouraged the use of renewable energy as the method to achieve them. For many reasons, wind and solar are the foundation of this infrastructure due to improving cost, efficiency, and flexibility in installation. Over the past year, we’ve seen a continuous rollout of policies pushing both public and private actors to reduce carbon emissions with solar panels – and those are unlikely to slow down. Aligning with the national interest of decarbonization and ecological restoration is now less of a choice, and closer to being law of the land.

Waste and water management is a growing concern for businesses, manufacturers and building managers around the world. More companies are looking for trusted partners to ensure their operations are 100% compliant with local waste and wastewater management policies and regulations.

Governments, too, have aligned on the need for safe water sources—among the United Nations’ 17 Sustainable Development Goals is providing clean, sustainable sources of water for everyone on the planet. Additionally, across the business landscape, there is growing demand from investors and other stakeholders to reach more transparent and documented environmental and sustainability goals.

Waste and water management is a cross-sectoral need. ESG and government regulations aren’t just targeting manufacturers. Every built environment from retail to healthcare and education is faced with the new challenge of upgrading how they manage environmental impact.

New regulations governing waste and water management in Asia

In Asia, governments are taking a more proactive role in environmental regulations for businesses. For example, earlier this year China’s Ministry of Ecology and Environment issued its “14th Five-Year Plan for Ecological Protection and Supervision,” marking the first governmental regulatory plan for ecological protection in the country. The plan mandates improved management of pollutants as an important part of promoting environmental quality and low-carbon development to maintain both health and safety. The new regulations also improve measures for the coordinated disposal of urban waste, domestic waste, food waste, medical waste, hazardous waste, garden waste, sewage and other types of waste.

Elsewhere in Asia, such as in Vietnam, there are ongoing projects to strengthen regulations on environmental impact, pushing for a system of assessment, inspection, permitting and enforcement. There will doubtless be increased pressure to stay compliant with environmental laws to improve water quality and waste management, as well as to be more transparent to the public.

Expectations for businesses

The scope of waste and water management has expanded beyond just the need to control hazardous materials. As more information about the environmental impact of buildings across the entire lifecycle (design, construction, and operation) becomes clear, regulations are only becoming more comprehensive.

Here are just some of the areas that businesses can expect to be regulated:

• Risk assessment,
• Groundwater impact
• Landfill contribution
• Recycling and composting
• Hazardous waste
• Reporting and transparency

Even for businesses that have set up a basic infrastructure for the general management of waste and water, staying compliant and up to date can be a challenge. For those that don’t have any infrastructure in place to deal with these needs, in-house management may prove to be a major financial burden.

Digital transformation of waste management

The extent and complexity of managing waste and water can make proper oversight difficult– either leading to increased costs or, when done improperly, leading to fines. Recently though, digitalization is injecting new vitality into the ability to manage waste transparently and with added value.

Implementing digital software systems to collect, report, and share data, makes full-lifecycle supervision of waste achievable. This new availability of data and analysis is instrumental for decision-makers and meeting ESG goals. Advanced technologies such as digital twins, IoT, AR and blockchain can help digitalize the full lifecycle governance of waste and wastewater. These emerging technologies reduce the complexity, difficulty and danger of environmental management, simultaneously optimizing governance capabilities.

In addition to regulation, digitalizing waste management works like a “matchmaker,” matching waste generation with appropriate treatment. Using big data on the production of waste and lowering information barriers can improve the efficiency of waste treatment and utilization. The availability of comprehensive data on waste and water enables businesses to connect with market players, contributing to the formation of a more comprehensive waste management system. In this sector, three trends dominate: sustainability, digitalization, and waste and they offer substantial advantages for compliance, efficiency, and the environment.

Outsourcing transparently

Waste and water management is critical to building sustainable and livable cities, and the weight of this responsibility is borne on the shoulders of businesses. On top of the fact that effective waste management is not only costly and challenging, it also requires a combination of support and services.

With the right partner, however, much of this pressure can be dealt with in a way that adds a net gain for businesses. For example, Aden has partnered with waste and water management experts to include them in a more comprehensive facility management offer. Together we designed a digitalized solution that provides total transparency for clients to monitor and track waste. This streamlines regulatory and reporting burdens while also offering more valuable data for decision-makers to adjust operations to have a lighter environmental impact and improve their ESG scores.

Indonesia is the largest economy in ASEAN by nominal GDP and continues to push forward aggressively in commercial, industrial, and mining sectors. With a recent carbon tax policy, Indonesia has signaled that this growth need not be at the expense of the environment.

The push towards sustainability and ESG is happening all over Asia, Indonesia included. Domestic and multinational organizations that fuel the Indonesian economy still strive to be greener and more responsible for investors and employees. Businesses operating in Indonesia – especially in the built environment – should pay close attention to the developments concerning carbon emissions, ESG and digitalization.

A strong signal for low carbon development

One of Indonesia’s biggest sustainability signals is a recent set of regulations calling for carbon pricing mechanisms. This new regulation makes it the second country in Southeast Asia to establish a carbon valuation scheme. Indonesia has tried to balance the growing trend of improved environmental regulation to meet COP21 goals with its desire and need to attract FDI and foreign technology. Increasingly, to qualify in the eyes of some investors, companies must be able to meet investor ESG criteria—and while this new policy is a positive development, history has shown that there are challenges turning regulation into action. This is even more reason businesses must lead the way in low carbon development.

To fully realize Indonesia’s potential, partnerships are key

Indonesia isn’t waiting to embrace the digital and green revolutions. The country has even stated its intent to relocate and build a brand new capital city to be a haven for sustainability and foreign investment. Commodities and raw goods, which account for a large part of the Indonesian economy, have, up until recently, been offshored for manufacturing purposes, but that is shifting as well. Indonesia is taking its resource-richness and access to strategic metals and minerals like nickel and lithium to build itself into an EV battery powerhouse. As the country broadly progresses from commodity extraction to manufacturing and technology, the old way of doing business won’t be viable for much longer.

Facility management: the frontline of sustainability

Facilities management provides businesses an everyday opportunity to make progress in sustainability: it’s where the battle is fought and won. But, until recently, businesses in Indonesia have taken a traditional view of FM—single soft services or hard services often with multiple suppliers. A more modern FM approach recognizes that a broader, more holistic approach is needed to create more sustainable facilities.

Waste and water management, for example, is a major problem in Indonesia, where open dumpsites predominate the waste management system and have led to pollution and environmental degradation. Likewise, utility assets like electricity, HVAC and compressed air are run inefficiently – leading to increased carbon emissions. Meeting increased pressures to stay sustainable and low carbon from the government, investors and clients means that managing facilities must address environmental and carbon impacts. The best way to do so is to have a single integrated supplier who can provide a holistic approach to more sustainable and responsible corporate practices.

Furthermore, digitalization is a key element of ensuring transparency. Any modern approach to facility management will be smart, digitalized and managed by experts who use tech like digital twins to make data-driven decisions about how buildings can operate more efficiently. Integrating modern FM and data offers businesses powerful new insights into performance and sustainability, alongside verifiable ESG benefits.

Indonesia’s next generation

Indonesia is still a young country—and the new generation won’t settle for business as usual. The economy is moving up the value chain with tech deals booming and the EV battery sector on track to expand rapidly. As the economy strengthens and more skilled labor starts to enter the workforce, there will be a real demand from the employee base to work for companies that are more environmentally conscious. They will also expect higher standards of workplace experience, and businesses that can offer those will have a distinct advantage for attracting better talent.

Embracing the challenges of a changing Indonesian economy

Looking at the current trends in Indonesia and the greater ASEAN business world, we can see that to be successful requires more than great staff and powerful tools—it requires a mindset that takes every challenge seriously. Greenwashing business practices no longer work in the ESG age. Knowledge and experience in the local business culture are a must for international companies as technology improves how a generation of more skilled workers communicate. Sustainability efforts like carbon reduction, community-forward policies like hiring locally, and a deep understanding of creating lasting supply chain infrastructure are all instrumental to the success of businesses in a changing Indonesia.

Overview

• New regulations on low-carbon buildings set to take effect in April 2022
• New and existing projects will be required to submit full energy audits
• New buildings are required to utilize solar and improve renewable energy mix
• Continual improvement targets are expected
• Ambitious Residential and industrial targets for energy savings are set

Last October, the Ministry of Housing and Urban-Rural Development issued a new regulation, the General Code for Building Energy Conservation and Renewable Energy Utilization, which goes into effect on April 1, 2022. This is the first mandatory regulation for carbon emissions from buildings and construction, and its scope is wide—including existing buildings, new buildings, construction commissioning and approval, renewable energy systems, as well as buildings operations.

Why now?

The construction industry in China accounts for more than half of the total carbon emissions nationwide. In order to meet the country’s ambitious carbon reduction targets, this policy is one in a line of many that will come into effect over the coming years. The new General Code will require stringent energy savings in residential, industrial, and in new building construction.

Shoring up and improving existing standards

This regulation is intended to solve multiple issues in the existing green regulatory framework, introducing mandatory policies around green buildings, including for the first time a clear mandatory standard for carbon emission intensity, which solves the problem of no clear quantitative index requirements for building carbon emissions in the past.

Residential area buildings will be required to have average energy savings of 75% in cold and extremely cold areas, and other climate zones will be expected to have an average energy savings of 65%. These numbers are pegged to energy consumption levels in 1980-1981.

Industrial targets will be increased by 20% as well.

Energy audits to set a baseline for emissions reduction

First and foremost it means a new layer of planning and forecasting energy consumption in line with international standards. In order to meet reduction goals and hit the national “3060” goal of peak carbon by 2030 and carbon neutrality by 2060, a baseline must be established in order for reductions to be made verifiably.

In addition to a full energy audit, renewable energy usage and carbon emissions reports will have to be submitted as well. Lifecycle emissions will have to be calculated based on projected energy use and energy type for both new and existing buildings. At every level of the building’s lifecycle, from surveying and design to live management to demolition, energy usage reports will have to be calculated and submitted. These will have to be approved according to the specifications within the law.

Energy calculations for new buildings will have to be calculated across 3 distinct levels:

Direct emissions

This will include the direct hydrocarbon fuel usage of the building’s operation. Cooking, steam, and any other direct usage of hydrocarbon fuel in regular operations are all included.

Indirect emissions

This includes consumption of grid electricity for heating and general operation. This is the primary source of emissions for a building during operations. Direct and indirect emissions combined represent the total emissions of a building’s operations.

Embodied emissions

These are the emissions involved in the design, construction and materials of the building—estimated to represent about 20% of a building’s lifetime emissions cost. New construction is encouraged to use low carbon construction methods and materials where possible in order to continually produce more energy savings.

Improving the energy mix

In addition to focusing on the reduction of energy use through design, construction, and operation, businesses and building owners will need to improve efforts to source power through clean energy sources.

Currently most energy in operations is generated using fossil fuels, such as coal or natural gas. On average, the proportion of renewable energy used is only about 6%. Audits will require the determination of carbon emissions based on the carbon emission factor of different energy types including coal, natural gas, etc. in order to encourage use of renewables.

New buildings will also be required to implement solar energy via photovoltaic panels and submit the total energy generation. This drive towards renewable energy will be met in design goals including an increase in the use of natural lighting, insulation, air thermal energy, biomass fuel sources, and geothermal power where appropriate.

Introducing the Akila platform

Digital twin building management designed to cut carbon

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Reductions in emissions through retrofits and smarter management

The scope of this policy applies to more than just new buildings and standing ones. It’s regulations will also extend to retrofits, renovations, and feasibility studies. Each of these processes will need to at the least match baselines, but reducing carbon will be heavily encouraged. Any increase from current levels of emissions will be forbidden.

There are many ways to reduce a building’s overall emissions profile in operations. Reducing direct electricity or fuel consumption, retrofitting utility assets like HVAC and compressed air to improve energy efficiency, using building or operational materials that are recycled or recyclable.

For buildings where retrofits prove to be too difficult or costly to implement, building standards for any future renovations will have to meet their current energy savings standards.

Building managers will have to think proactively and deeply about meeting emissions reductions targets and make changes wherever possible. To make serious carbon reductions will require partnership with energy and environmental management firms and technical asset management vendors. Building management will need to become smarter and more digitalized using software like digital twin building platforms. Daily facility operations can also benefit by sourcing facility management providers who are experienced in reducing carbon impact through sustainability best practices.

Stronger standards, greener buildings

Since the outlay of China’s 14th Five-Year Plan, it is clear that green buildings will be a major focus going forward. Policies will grow increasingly broad and granular, reaching across sectors and industries, and even into consumer goods and the promotion of new energy efficient standards for items such as lights, doors and windows.

In the past decade, there have been many successful green buildings seen in China, but there are also many projects embarked on with little regard for the new standards of green buildings—for various reasons such as shortcomings in the planning stage, lack of expertise, or lack of know-how during the construction process. Although compliance with green building standards and regulations represent a higher initial cost, over time the social benefits and total cost reductions in operations from green buildings will be worth it.