This year’s AMPEAK event was a very encouraging experience, at a time of huge change and exciting progress for the industry.
AssetFuture’s Manager for Data Excellence, Darren Chuang, presented on the role of embodied energy in lifecycle modelling - a critical issue for asset managers as we move towards a zero emissions future.
The statistics are startling: cutting out one return flight from Sydney to Melbourne saves 200kg of CO2e per year. Cutting meat, dairy and beer from your diet cuts 2000kg. While reducing 20% of embodied energy in the built environment saves 200,000kg of embodied energy each year. Even small changes can have a huge impact.
Where is all this carbon coming from?
Carbon is embodied at multiple stages of the built asset lifecycle, from the raw material supply, manufacturing and transportation involved in construction through the asset’s use and repair, to its end of life, where de-construction, demolition and waste processing all involve emissions.
JPMorgan observes that "buildings are the largest contributor to global warming". The real estate sector, including commercial and non-commercial buildings, accounts for 38% of all greenhouse gas emissions.
While the majority of emissions are generated in the construction phase (approximately 54%), a significant quantity comes from maintenance and refurbishment (20%), as well as operational energy and water use (23%).
The type of building obviously impacts these figures, with concrete cladding having a 2.3x higher carbon cost than weatherboard, face brick, aluminium and steel combined.
For Asset Managers, this means making better embodied energy choices and taking a much longer-term view. Short-term savings in cheaper, less carbon efficient materials in construction and maintenance/repair may be most costly in the long-term.
How to "decarbonise" existing assets
Buildings built during less environmentally aware eras will need to be "decarbonised". There are three ways to improve a building’s carbon footprint.
Improved energy efficiency - using technology to analyse and optimise energy usage, for example adjusting HVAC systems based on real-time data about occupancy, as well as improving insulation, ventilation and biodiversity.
Increased renewable energy supply - such as investing in solar panels, on-site water recycling.
Reducing embodied carbon - assessing the impact of construction materials used for repair/upgrading, reusing old concrete and combining it with timber and aluminium.
If we are all to achieve net zero carbon by 2050, the work needs to start now. Sustainability must be built into Strategic Asset Management Plans (SAMPs). It is going to be challenging and will require investment, but it will also drive innovation in the industry that will result in much greater efficiency and sustainability, as well as higher value for more environmentally sustainable assets.