Decarbonization and Sustainability Reporting: Shaping a Resilient Future for the Built Environment
In today’s world of heightened environmental awareness and the urgent need for sustainable practices, innovative solutions within the built environment have taken center stage. While energy-efficient technologies play a vital role, operational excellence has become the cornerstone of effective carbon reduction efforts in this sector.
Six years ago, the acquisition of a company in the built environment industry brought about significant organizational changes. This decision created a void in the market, but it also created an opportunity for forward-thinking professionals.
Recognizing the growing need for expertise in sustainability, a group of experienced professionals from the advisory services division came together to establish DeltaQ. Rooted in energy management within the built environment, the company has since broadened its scope to address carbon management. Today, their work spans emissions sources including building operations and Scope 3 emissions, with a keen focus on decarbonization in commercial spaces.
DeltaQ has become a recognized leader in the field of sustainability for the built environment. In this article, Ms. Grace Foo, Director of Operations and Global Initiatives one of DeltaQ’s key leaders, discusses the strategies, challenges, and opportunities involved in the drive for decarbonization, as well as the critical role of policy, and operational expertise.
Director of Operations and Global Initiatives of DeltaQ
(Photo: DeltaQ)
A Holistic Approach to the Built Environment
DeltaQ anchors its operations in one of the most impactful areas for climate action—the built environment. Globally, commercial buildings account for nearly 40% of carbon emissions, making them a priority for any meaningful decarbonization effort. Grace emphasizes, “Our methods integrate top-down policies with ground-level implementation. That’s the key to achieving lasting results.”
Top-Down Influence: Shaping Policy for Impact
On the macro level, DeltaQ works closely with governments to design policies that drive energy efficiency and emissions reductions. An example of their success is their involvement in the National Australian Built Environment Rating System (NABERS), a program aimed at evaluating and improving buildings’ energy performance.
“NABERS assesses buildings based on operational data rather than projected energy use,” Grace explains. “It provides tenants and landlords with a credible benchmark, enabling informed decisions.”
This policy-centric approach doesn’t end with guidance; DeltaQ actively supports policymakers in drafting and implementing frameworks that ensure their goals are not just aspirational but actionable.
(by: DeltaQ)
Bottom-Up Engagement: Practical Solutions for Real Results
At the ground level, DeltaQ’s engineers and consultants engage directly with building owners, operators, and facilities managers. Their services span energy audits, management system reviews, and operational interventions.
“We believe that actionable insights drive change,” Grace shares. For example, simple yet effective measures like optimizing chiller controls, retrofitting outdated systems, or fine-tuning operational algorithms can dramatically reduce energy consumption.
The focus on bridging technology and practical operations reflects DeltaQ’s unique philosophy: even the best-designed systems need efficient operations to meet their potential.
Unveiling the Power of Data in Energy Efficiency
Data is the cornerstone of DeltaQ’s strategies. Through energy auditing and monitoring, they help clients gain a granular understanding of their systems’ performance. Grace points out that modern buildings, especially in regions like Australia, often employ sub-metering to divide and analyse energy usage across systems like lightings, heating, cooling, and plug loads.
“Sub-metering allows real-time insights,” Grace explains. “You can break down energy consumption by activity and target the most inefficient areas.”
For older buildings, where sub-metering may not exist, DeltaQ uses interval energy data, observations from site visits, and modelling techniques. These efforts often reveal operational inefficiencies overlooked during design or construction phases, providing opportunities for optimization.
Rising Importance of Emissions Reporting
In a regulatory landscape that’s constantly evolving, sustainability reporting has become central to corporate strategy. Australia’s mandatory emissions reporting for the top 200 ASX-listed companies exemplifies this trend. Under this system, companies must report Scope 1 (direct), Scope 2 (indirect from energy), and Scope 3 (indirect from value chain) emissions, with compliance thresholds broadening over time.
Grace emphasizes the challenge and importance of addressing Scope 3 emissions. “They extend far beyond your operations and into your entire supply chain. It’s complex but essential for a company’s sustainability profile.”
Interestingly, many proactive organizations already voluntarily disclose their Scope 3 emissions. According to Grace, this provides a competitive advantage, demonstrating leadership and setting the stage for more responsible supply chain practices.
The Role of Standards
In tackling these reporting challenges, DeltaQ ensures its clients are not only compliant but also aligned with global best practices. International standards like ISO 14064 for greenhouse gas reporting and frameworks such as TCFD (Task Force on Climate-related Financial Disclosures) or SBTi (Science-Based Target Initiative) guide their advisory services.
“Standards build trust and credibility,” Grace states. Whether companies aim for investor confidence, regulatory compliance, or market differentiation, robust reporting serves as a cornerstone of their decarbonization strategy.
From Local Solutions to Global Success: A Deep Dive into NABERS
NABERS, a global leader in sustainability rating systems, owes much of its success to its pragmatic design. DeltaQ, as a long-standing partner in implementing and expanding NABERS, has witnessed its impact firsthand.
Grace explains, “Unlike systems such as LEED or BREEAM, which emphasize design, NABERS focuses on how a building performs operationally.”
The measurable impact of NABERS is undeniable. In Australia alone, NABERS has facilitated up to 40% reductions in energy intensity for office buildings over two decades. By tying ratings to measurable outcomes like rent premiums and energy savings, it has transformed energy efficiency into a financial incentive for building owners.
Regional Strategies: Lessons from Australia, New Zealand and Beyond
As DeltaQ operates in diverse markets like Australia, New Zealand, and the UK, it tailors its approaches to suit local contexts. Grace highlights several regional differences:
- New Zealand: Efforts focus on regulatory measures to improve the energy efficiency of commercial buildings.
- United Kingdom: NABERS UK leverages an industry-led approach and addresses the gap between a building’s design intent and actual operation. “We’ve found that even well-designed buildings are often poorly managed,” Grace notes.
A common challenge across regions is the misalignment between different stakeholders in a building’s life cycle. Development teams prioritize cost efficiency during construction, leasing teams focus on fast occupancies, and operations teams lack engagement in the initial phases. “Aligning these stakeholders is essential,” Grace stresses.
Emerging Markets and Future Prospects
While Grace acknowledges the potential in markets like Southeast Asia, her immediate focus remains on consolidating progress in established markets. Here, emissions reporting is becoming a promising new frontier, as companies increasingly prioritize transparent disclosures. For instance, we are seeing increased interest from clients with ties to Southeast Asia who need to comply with Bursa Malaysia’s Sustainability Reporting requirements. “It’s an exciting area, full of opportunity to make meaningful change,” she shares.
Key Takeaways for Businesses
For companies aspiring to decarbonize their operations, Grace offers the following guidance:
- Adopt Holistic Approaches: Effective decarbonization involves integrating top-down policy compliance with ground-up operational efficiency.
- Invest in Accurate Data: Reliable data systems, such as sub-metering, ensure precise analysis and actionable results.
- Prioritize Scope 3 Emissions: Beyond regulatory requirements, Scope 3 emissions represent an opportunity for companies to take the lead in sustainability.
- Leverage Standards and Tools: Rating systems like NABERS and frameworks like TCFD*provide structured pathways for measurable outcomes.
* The Task Force on Climate-related Financial Disclosures (TCFD) recommendations have been integrated into the International Sustainability Standards Board (ISSB) framework and adopted by Australia’s – Australian Sustainability Standards Board (ASSB). Meanwhile, SBTi remains a key framework for corporate emissions targets. Though TCFD is now suspended, its principles continue within ISSB and other standards.
The Road Ahead: Sustainability as a Competitive Edge
In a rapidly changing landscape, the need for ambitious climate action has never been clearer. Grace concludes, “Sustainability reporting is no longer just a compliance issue; it’s about securing competitive advantage in a decarbonized economy.”
From enabling emissions transparency to fine-tuning building performance, DeltaQ bridges the gap between policy ambitions and real-world challenges. With its holistic, data-driven, and regionalized strategies, the company is not just mitigating carbon footprints—it’s shaping the blueprint for a more sustainable future.
As businesses worldwide adapt to evolving standards and expectations, the insights shared by Grace and DeltaQ underscore a vital truth: sustainability isn’t just good for the planet—it’s essential for long-term success.
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