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.

Mr. Jackie Zhou has been leading Aden’s dedicated Healthcare division for 6 years. With a background in the medical sector and facility management, Jackie has also been a lecturer at Jiaotong University on the topic of facility management for Healthcare facilities. We spoke to Jackie about the facility management, sustainability and the future of healthcare facilities in China.

What makes facility management for the healthcare sector different?

I would put it like this: a medical facility is like a microcosm of everything that facility managers typically oversee. The difference is mainly about the especially high stakes, requirements and complexity that come with a hospital or assisted-living community. So, we must work in real partnership with the hospital and medical leadership. The stakes are high, and continuous excellence is mandatory.

Why exactly are the stakes so high?

Because in these environments we aren’t just managing a building, we are actively contributing to the patients’ and residents’ well-being, health and recovery. Some facility management solutions will be noticeable right away to patients and visitors – things like hygiene, food service, lighting, security and reception, the acoustics, communal spaces, etc.
Then there are other things which are less visible, but hugely important to facility performance and health outcomes. For example, we can do predictive maintenance to ensure the reliability of the building and its energy-consuming systems; you have HVAC automation that lets us maintain a consistent levels of thermal comfort and efficiency; you have technical projects and upgrades, where we might systemically improve the air filtration or coordinate installation of more efficient chillers and boilers. Those are some examples, the list could go longer.

What inspired the launch of Aden Healthcare?

We launched as a dedicated team in the 2010s, a time when the private healthcare sector in China was growing 20% per year. People wanted a better tier of medical care, and they were increasingly willing to pay for it. Facility management in China hadn’t yet caught up with this demand. We saw a unique opportunity to deliver this through Aden – to build a team of medical sector specialists combined with Aden’s nationwide reach in China and its innovation in merging IFM, energy and digitalization.

Today, we feel that we are uniquely equipped to go beyond just managing the day-to-day problems of traditional FM and become real strategic partners to medical care facilities, helping them achieve their biggest goals for sustainable growth and ESG.

You just mentioned ESG. How is the sector currently doing in terms of sustainability? The environmental impact of medical facilities seems to get less attention than sectors like manufacturing and transport.

This is really important to us. And you are right, people often overlook healthcare as a contributor to global warming. But in fact, healthcare facilities consume 2.5 times more energy per square foot than other commercial buildings. And the IEA has projected that energy demand in healthcare facilities will double between 2016 and 2040. That comes with very clear consequences in terms of carbon impact.

It makes sense when you think about it – a typical hospital is a multi-story building; it has a large footprint and energy-consuming equipment in virtually every room. It needs to remain lighted and powered 24/7; it requires continuous temperature control through HVAC. And then you have the waste, water and energy use in food services, the Scope 3 emissions from purchasing and supply chain, and so on.

Medical groups are certainly aware of this, and of course there is an equally large financial cost that comes from being inefficient. The penalties for non-compliance are starting to get serious as well. So, being ESG-oriented is not just better for the planet, it’s becoming necessary for business. This is why we have made our digital platform Akila such an important pillar of our services. By using this platform as our core tool, we are able to bring transparency to the hospital’s real energy, waste and carbon impact, and then comprehensively track and optimize the buildings’ performance.

In what regions is Aden Healthcare most active?

This team is really focused on China, and we have formed partnerships across the country. In the north, we just celebrated 10 years with United Family Hospital in Tianjin. Going west, Raffles Hospital in Chongqing is one of our most advanced examples of digitalized asset maintenance, which we are doing through the Akila platform. Overall, our biggest hub of activity is on the Eastern seaboard around Shanghai, Zhejiang and Jiangsu. But we are able to work anywhere in China because we have built such a large network over the past 25 years and have Aden people in 80 cities.

I should add that Aden has a global healthcare footprint. So there are other medical sector partnerships in Southeast Asia, and Aden has done interesting projects in emergency response, remote medical services and telemedicine for large camps and compounds outside of China.

What’s next for Aden Healthcare?

We know that private healthcare is going to keep growing in China, and so will the demands on the sector for compliance, decarbonization and ESG. We will continue classic IFM services while working even more closely with Aden’s technical asset management, renewable energy and digitalization teams. This way, we can help medical-sector clients make the urgent and necessary transition to digitalized and decarbonized services as quickly as possible.

Another aspect that Aden Group is becoming very involved in is design, construction and engineering. By bringing digitalization and BIM technology to this process, it is possible to optimize new medical buildings end-to-end, from the earliest stages of design. You can integrate new energy solutions and innovative uses of building material, so that their construction is far less wasteful and their lifetime carbon impact is as close as possible to net-zero. This is beyond the scope of Aden Healthcare team per se, but the point of being in Aden Group is exactly that – being able to link and optimize all the different aspects that go into managing the built environment to produce the best impact for clients, environment and people.

For a utility that is so crucial to industrial processes, it is remarkable how little attention compressed air gets. The nicknames for compressed air even reflect this: “the hidden utility”, “the invisible utility”, and “the fourth utility.” And yet, compressed air accounts for 5-6% of all the electricity consumed in the world – consumption that is often frighteningly inefficient at the factory level because of poor leak management. Our audits have uncovered cases where clients were consuming up to 50% more energy than would normally be required, all because they had failed to identify and manage compressed air leaks.

Are these clients just negligent? So rich they don’t need to worry about energy bills? Certainly not – they lacked the tools and data to answer three critical questions properly:

• Scope: How many leaks do I have, and how much energy am I losing?
• Location: Where exactly are these leaks happening?
• Effectiveness: Did the leak repairs work, and how much did I save afterward?

One big issue is that “the invisible utility” tends to produce invisible problems. Water leaks will, at least, leave noticeable signs (puddles and water damage); compressed air leaks can’t be seen or heard by the human ear. When gas and water flow is disrupted, pressure levels drop; when compressed air is leaking, the pressure stays the same – the compressor simply burns more energy (and client money) to maintain the same levels.

Too many industrial clients carry on, assuming that their large energy bills are just part of the cost of doing business or with a vague sense that they are losing money and wasting energy, but are not equipped to make the needed fixes.

Learn more about our energy management solutions >>>

Kicking off your leakage identification and management (LIM) campaign

Now, the good news: with the right team and tools, all of this can be addressed quickly and cost-effectively. Lack of visibility and measurement can be resolved with smart sensors and an expert-backed digital management platform.

In fact, in very little time, you can begin and finish a compressed-air optimization project at your site (often called a LIM campaign). This will produce:

• Dramatic improvement in your energy costs
• Better compliance with environmental regulations and ESG reporting
• Indisputable before-and-after data to document savings made

While any time can be a good time for energy management optimization, many clients choose November and December. The reasons for this are quite pragmatic – LIM campaigns are one of the most effective ways to direct end-of-year budget overhang towards a high-results/high-impact outcome. Many clients see LIM as a great opportunity to close out the year in a strong position, with a few quick-turnaround wins in energy efficiency and costs.

The missing ingredients: data, baseline, and before-and-after

A traditional LIM process is undertaken in two phases. First, detection, where a technician follows compressed air lines with an ultrasound detector, locating and tagging leaks that cannot otherwise be heard by the human ear. Fixing is precisely what it sounds like and mostly involves tightening or replacing joints, replacing faulty lines, and repairing or replacing fixtures.

Of course, these steps will always be needed. But the missing ingredient is context – how was each asset performing before the repairs and afterward? It is critical to take the proper time to understand this. Historically, getting this picture would be extremely labor and cost-intensive. Today, though, sensor and digitalization technologies let us enormously expand our monitoring power, with a lighter onsite footprint.

Some key differences in the measurement can be summarized as follows:

How we do it: Six steps to compressed-air energy optimization

Let’s dive into the specific steps of compressed air energy optimization.

Step 1: Define energy and business parameters

We always start by understanding your expectations and objectives concerning energy use and health and safety. If you have a stated energy reduction goal, we will help you move toward your objective. We will also take the time to understand your health and safety policies and procedures that will apply on-site when we carry out the detection and repair activities.

Step 2: Identify and register client compressors

This stage establishes the foundation for the continuous monitoring that is vital for understanding and optimizing the energy performance of your compressed air system. We will collect information about the compressors and air systems at your site, including fundamental data such as manufacturer and installation date.

Step 3: Install sensors for continuous monitoring

Before carrying out the LIM, we will install non-intrusive sensors to measure the process data streams for the compressed air system, for example, current, voltage, pressure, and dewpoint. Through machine learning, the data gathered from this initial monitoring will give you a rich picture of the existing performance of your system.

Step 4: Locate leaks

This is the action stage. Our technicians, armed with ultrasound microphones to pick up the sound of leaks undetectable by ear, will detect and tag the leaks and then log them into the register. We expect to detect around 95% of all leaks in your system (and the remaining leaks will be so minor as to be economically insignificant). 

Step 5: Repair leaks

We will then repair each leak as required, by tightening, repairing, or replacing fixtures, connections, and lines, then we will remove the tags and record the work as complete in the register. This step is where the big gains in energy efficiency happen – and we will give you the hard numbers quantifying this improvement in Step 6.

Step 6: Final monitoring

This is the game changer. Once we have repaired the leaks, this final phase of data collection helps us to understand and quantify for you the improvements in the compressed air system that have occurred as a result of the repairs. We will compare this data to that collected in Step 3 to calculate the energy savings that you will have gained. We will also use the data to help you improve your understanding of the optimal energy performance of the system free of leaks. We may also be able to develop recommendations in areas such as operational management to provide further energy optimization.

A fast route to energy savings              

If you are looking for a fast, easy win for energy savings at your site, don’t neglect your compressed air systems. It might be “just air,” but the size and speed of the savings are often quite remarkable. Compressed air leak management will help you see the value by optimizing the performance of your systems. It will give you the “why?” that is missing from the way most managers view compressed air maintenance.

Our solution gives you:

• A project with measurable returns completed in a short timeframe
• Hard data for sustainability or ESG reporting and compliance requirements
• Most importantly, a compressed air system that is working at peak efficiency

Is your maintenance a security liability or strategic asset?

Ask someone who has spent time in an R&D facility what security in that environment looks like, and their description will most likely focus on the places where they had the most direct interaction entry and exit points, with uniformed personnel, scanners, and the like. Or perhaps they knew the staff who monitored their working area. What they probably won’t mention is anything about the site’s technicians, energy engineers, and countless others who ensure the smooth performance of the R&D center.

What if we were to think outside of these familiar boundaries, expanding the scope of “security” to include maintenance teams and technicians as well as electrical and utility rooms and all the other technical assets and equipment that make a site function? What are the implications for a security strategy from this wider perspective?

This is precisely the viewpoint that security planners in R&D should adopt because the work of maintenance departments has a tremendous impact on core security concerns. In any R&D facility, the maintenance plan and standardized protocols (or lack thereof) will directly impact access control, site functionality and the overall reliability of systems.

Managing maintenance operations in a methodological, secure and digitalized way can cement your compound’s security. Conversely, sites with misaligned maintenance and security planning will be exposed to an unnecessarily high risk of IP theft and cyberattacks. Therefore, maintenance planning and execution must be considered a vital aspect of security strategy, and it demands a high degree of coordination and alignment.

Three principles for the alignment of security and maintenance

Through our extensive experience managing high-security and high-risk facilities in Asia and worldwide (R&D centers, several embassies and diplomatic compounds), we have identified three core principles for aligning security and maintenance that have guided our strategy, while also informing the development of Aden Group’s digital twin platform for the built environment, Akila.

1. Be asset-centric and proactive – reactivity is a risk multiplier.

The fundamental goal of maintenance is to make assets perform as well as possible, for as long as possible. In ordinary environments, failure to achieve this brings primarily financial pain. Where the R&D activities where the work undertaken is highly strategic and desirable to other parties, the consequences of breakdowns and extended downtime are even worse, because every technical issue becomes a potential security issue.

For this reason, maintenance of complex, high-security sites should be as scheduled and forward-looking as possible, while also leveraging sensors and AIoT to enable predictive maintenance of critical assets such as HVAC, electricity rooms and water systems.

This asset-centric approach means that maintenance teams can organize their work responsively, in relationship to the real condition and performance of your R&D center’s equipment. As a data-driven approach, it also opens opportunities to apply AI and simulation technologies to performance history, creating much more precise forecasts about optimal levels of maintenance and the best type and timing of service to each asset.

Corrective maintenance (responding to unforeseen problems) may never be entirely avoidable, but every effort should be made to ensure that it is the exception rather than the rule. The risks that come from a heavily reactive approach can manifest themselves at many levels:

• The physical integrity of the structure: defects such as faulty gates, leaks, etc.
• Disruption to systems: for example, if a backup diesel generator fails to start in the event of a power outage, continued operations may be negatively affected, and the site’s CCTV and smart cam systems may be compromised.
• More outside access with less comprehensive vetting: Unforeseen problems can necessitate support vendors accessing the premises at relatively short notice. At a minimum, this will increase the administrative burden, but it can also open the door to targeting by bad actors.

So, how do sites achieve the necessary level of asset-centricity? It is not something that can be improvised. A comprehensive maintenance plan is needed, as well as the technical infrastructure to support it.

2. Don’t let your maintenance plan become a vulnerability – control your information ecosystem.

So, you have set up your maintenance plan – congratulations! But this is not the end of your security needs. The maintenance plan must be made secure, as must all communications between technicians, facility management and outside support. This is because – if intercepted – the maintenance plan and operational communications are a major liability. In the wrong hands, your site’s maintenance plan can:

• Be exploited by people with the intention of trespassing.
• Signal when critical systems are weakened, giving critical intelligence to bad actors.

The more unstructured your maintenance team’s operational communications are, the more points of access are vulnerable to interception by bad actors.

One thing is sure: technicians will record and share information. Have they been given the infrastructure to carry out this important communication in a secure manner? Without a secure and centralized platform, technical staff will use the free tools readily available on their phones: SMS, photos, email, attachments, voice messages and video.

To mitigate this, a number of steps can be taken. The core principle, however, must be to establish a secure single source of truth for all relevant information, with careful controls over who can access which information, and when they can access it. This is our core criteria, as built into the Akila platform:

• All technical maintenance must be secured in a cyber-secure system. This includes not only strong centralized elements but also the ability to manage cybersecurity on mobile phones.
• The system should be comprehensive enough that you can reasonably ask technical staff to exclusively use that system to manage their operational work while forbidding the use of other (unsecured) communication channels.

A final point to note is that centralizing this information also makes it far easier to share with security staff, allowing more opportunities to prevent incursions by people intent on IP theft.

3. Build your system for execution control and compliance – beware of “weak digitalization”

Our last principle is about ensuring that what is written into the maintenance plan is executed. If a discrepancy is detected, notifications are swift and the center can investigate as needed.

On this point, it is worth stepping back and asking why we digitalize in the first place, rather than continuing with paper-based reporting. Fundamentally, digitalization is about taking large volumes of operational information and making it:

• Permanent – not subject to physical decay or misplacement.
• Transparent – easily accessed by those with the appropriate clearance, and not hidden in a file cabinet.
• Systemic and responsive – Continuously updating, with the collection of data integrated into the process of daily operational work.

But, beware – digitalization can either be deep and transformative or it can be superficial (“weak digitalization”).

What does weak digitalization look like? The main characteristic is that some digital infrastructure has been put in place, but it has quickly become a “junk box” of unstructured information. The most common problem in weak digitalization is that technicians and stakeholders can report information, but the feedback is left too open, with no direct matchup between tasks in the maintenance plan and the resulting operational notes, photos, and screenshots. This results in a lack of execution control for team leaders and site managers – no easy way to validate to what extent or how well the plan is being carried out. And, therefore, little improvement over traditional paper-based systems.

By contrast, where digitalization is highly structured and has direct links from planning to execution, the benefits to asset performance are enormous, enabling far stronger alignment between maintenance and security. For site managers, information can be viewed at either the granular level (task by task and unit by unit) or holistically (compiled into high-level and dashboard views). From the perspective of operational efficiency, the following three metrics are vital:

• Planned duration vs. actual duration: e.g. “This task was scheduled to take 30 minutes, but it took 60. Why?”
• Planned date vs. actual date: e.g. “This inspection was supposed to happen on Thursday, but it took place on Friday. Why?”
• Planned resource vs. actual resource: e.g. “We assigned Jeremy to this task, but it was completed by Luke. Why?”

Note that the examples above are framed negatively, but a system may also provide positive surprises and opportunities to reward high performers and proactive staff. Whether by carrot or stick, digitalization must provide your site with a systematic and clear view of what is really happening from planning to execution.

A cycle of improvement

Every plan, even the best, needs space for adaptation based on real-time developments and new insights. You will need to adjust your risk register and operational routines periodically to ensure optimum performance. While “sticking to the plan” is important, so is learning from the process of operations, the data you have collected, and proposals from your technicians on the ground.

This is not a one-time project, but an ongoing process built on transparency, collaboration and silo-breaking. As the maintenance plan evolves, it will be necessary to coordinate closely with the security team. The success of this process will depend on transparency, cross-team alignment and a focus on the best outcomes for all parties managing your center. Thus, we need to reframe our thinking regarding operational teams and their role in maintaining security. Next time you see technicians at work, think of them as not only the people who make the machinery work but also as strategic allies and partners ensuring the security and performance of your R&D center.

The first thing that comes to mind when someone mentions air quality is the air outside and the level of pollution present, particularly particulate matter (PM2.5), which are inhalable particles that have serious effects on public health. Indoor Air Quality, which does not usually receive the same level of attention, is as, if not more, consequential to people’s health. People spend 90% of their time indoors, where pollutants are between 2-5 times higher than the air outside, and a large amount of that time is in the workplace. Additionally, workspaces may not be using the right technology and processes to monitor and upkeep indoor air quality. Regulating air quality indoors is a pillar of creating a healthy, human-centric workplace experience that promotes employee wellbeing.

Sick Building Syndrome

Without a system to monitor, improve and maintain Indoor Air Quality (IAQ), occupant health suffers and overall employee wellbeing declines. The most direct consequence is the effect on the respiratory system of building occupants. Most commonly, people will experience flu-like symptoms. However, prolonged exposure to poor indoor air quality can lead to more serious diseases like asthma and COPD.

Physical health-related issues are the most obvious result of poor air quality. They can also significantly impact mental faculties – leading to a phenomenon known as “sick building syndrome.” In 2021, a Harvard research report found that the air quality in the office significantly affects cognitive functioning, including reaction time and concentration. The study followed 302 office workers in six countries (China, India, Mexico, Thailand, the United States, and the United Kingdom) for one year to see the effects of indoor air quality on their health over time. The researchers installed environmental sensors at their workplaces to monitor fine particulate matter (PM2.5), carbon dioxide, temperature, and relative humidity in real-time.

The subjects took two cognitive ability tests to assess their cognitive speed and working memory. The results of the study showed that an increase of ten micrograms of PM2.5 per cubic meter slowed the reaction speed and accuracy of the subjects by 1% in both tests. For every increase in carbon dioxide concentration by 500ppm, a common level of variation, subjects completed both sets of tests 1% slower and more than 2% less accurate.

Prolonged exposure to PM2.5 was already well known to inflame the central nervous system and cross the blood-brain barrier leading to long-term neurodegenerative disease. What this study demonstrated is that there are serious short-term effects as well.

Measuring and monitoring indoor air quality

Indoor Air Quality involved the monitoring and measuring of various substances (pollution) contained in the air that reach a constant detection value within a certain period and certain area. There are four main categories of indoor air pollution usually measured:

• Volatile Organic Compounds (VOCs): carbonaceous substances that evaporate at room temperature or higher. This could be something like radon, which occurs naturally, but can become trapped in a building with poor ventilation and filtration. Exposure to VOCs can cause irritation, dizziness, or worsening asthma. Long-term exposure may damage the lungs, liver, kidneys, or nervous system.
• Biological pollutants: contaminants produced by living things, such as dust mites, mold, pollen, dust as well as bacteria and viruses. Unvented, moist environments such as bathroom areas are where these pollutants usually appear.
• Combustion byproducts: this includes carbon emissions, nitrogen dioxide and other byproducts of burning that can accumulate in buildings that do not have a proper filtration and ventilation system in place to refresh the air supply.
• Legacy pollutants: come from the breakdown of certain building materials or other products that accumulate over time in a building. This includes substances like asbestos, formaldehyde, as well as lead and polychlorinated biphenyls (PCBs) that come from sources like industrial glue or chemical cleaners

Keeping pollutants out of the circulating air in a building requires air filters with the necessary Minimum Efficiency Reporting Values, or MERV, rating. The type of filter, which ranges in ratings from 1-16 (the higher the level, the smaller the particle filtration), will vary from building to building. For example, working in an office space might not need as high-rated a filter as an industrial workplace. MERV-rated filters work to remove particles from all four categories of pollutants from entering the air circulation.

Besides pollution, relative humidity is also an important environmental factor to control. First, occupants are most comfortable with a relative humidity between 40-60%. Second, controlling humidity is also necessary for containing mold, mildew and other biological pollutants.

Akila Indoor Air Quality monitoring

Maintaining and improving indoor air quality

Like any good action plan, managing indoor air quality needs to start with the right data. Obtaining an accurate, real-time data stream of indoor air pollution and humidity is impossible without the right system of sensors. Placing sensors throughout the building to collect data in a centralized platform is the first step for building managers to properly monitor and act on IAQ.

Action plans might look different from workplace to workplace, but often it begins with keeping air filtration and ventilation equipment at peak operating conditions. Like any piece of equipment in a building, air filters need to be properly maintained to keep them performing at the right capacity. Well-maintained filters ensure a suitable IAQ and protect occupant health and employee wellbeing. It also helps reduce the pollution created by building operations – with poorly maintained systems consuming 15-20% more energy.

With smart building management systems, many of these processes can be streamlined and automated. After installing IAQ sensors, building managers can choose to install IoT devices on equipment and controllers that monitor and automatically adjust ventilation and temperature to optimize indoor air quality more effectively.

Supplementing a data-driven, tech-backed hard service action plan with other soft operations can also help improve IAQ. For example, opening windows is an easy and effective way to improve ventilation. However, in situations where windows do not open or outdoor air quality is not good, ensuring cleaning regimens are thorough enough to remove potential air polluters and cleaning products do not add VOCs to the air is even more important.

Improving indoor air quality in the workplace is not an option in the post-pandemic world

Putting more focus on the air quality in offices and workplaces (“small environments”) is just as important to public health as the outdoor “big environment.” Poor IAQ impacts respiratory health and mental well-being. Post-pandemic, the last thing any employee or building occupant wants is to face those challenges again due to poor indoor air quality, and it is essential for businesses that wish for employees to return to the office to keep air quality high.

Indoor air quality is just one part of Indoor Environmental Quality (IEQ), which includes lighting, sound, temperature comfort and other factors. Improving and maintaining IAQ is important, but it is even more effective when paired with a comprehensive approach toward IEQ. Creating more comfortable, health and human-centric environments is needed for businesses to succeed in the face of changing expectations and demands by employees, management and investors.

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.