BUILDINGS
PILLAR 1
Blueprint for Net Zero
In pursuit of a more sustainable future, commercial buildings present immense opportunity
What’s driving efficiency?
Many cities across North America are aiming for net zero by 2050 and commercial buildings are no small part of that push. After all, large buildings account for 60% of a city’s emissions on average. According to the Energy Information Agency, a “commercial building” is any building where the majority of its floorspace is used for purposes that are not residential, industrial or agricultural. Data from the Commercial Buildings Energy Consumption Survey indicates the average commercial building is 44 years old.
To make real strides in sustainability, the commercial building sector needs to look at buildings as an opportunity rather than an obstacle. This means those that own and operate in the built environment must understand effective methods of making new construction net zero and moving existing buildings in the right direction.
Opportunities to advance decarbonization in existing buildings involve incorporating smart technologies like remote monitoring solutions that proactively assess pump performance or digital tools that integrate with building management systems.
Energy and environmental regulations, at the state and local levels, are influencing the adoption of such energy-efficient building resources. When it comes to energy efficiency requirements, building codes on the East and West coasts are some of the most progressive.
In 2019, for instance, New York City passed Local Law 97. Considered one of the most ambitious building emissions laws in the country, it requires large buildings over 25,000 square feet to meet strict new energy and emissions guidelines by 2024, with those limits getting tighter by 2030. The goal is a 40% emissions reduction by 2030 and 80% by 2050.
While few places have emissions caps as aggressive as New York, industry professionals anticipate most regions of the country will be impacted by stricter building codes and regulations soon, creating an even larger demand for energy-efficient technology. Initiatives, such as net-zero buildings, and certifications such as Fitwel, Green Globes, LEED and WELL building standards, contribute to the increasing urgency for energy-efficient, smart solutions in all aspects of the building industry.
Electrification and decarbonization also play an important role in energy efficiency. Reducing our dependence on fossil fuels, which currently account for more than 75% of global greenhouse gas emissions, and using electricity as the primary fuel source in buildings and homes, can significantly cut down on our carbon footprint. According to projections, a comprehensive strategy of reducing fossil fuel dependence and aggressively increasing electrification from clean sources could potentially reduce U.S. greenhouse gas emissions by 50% or more by 2035.
“When we think about decarbonizing buildings, the primary opportunity really lies in identifying ways to make upgrades and enhancements with what is at hand,” said Jim Nolan, a market development manager with Xylem who frequently presents on decarbonization and sustainable building practices.
Bell & Gossett transforms Lucas Stadium for major swim event
When Lucas Oil Stadium sought to morph from a football stadium into the world’s largest aquatic center in June 2024, Bell & Gossett and its representative Hydronic & Steam Equipment played a pivotal role in the transformation. The first-of-its kind project, constructed in just three weeks, showcased Xylem technology, demonstrating the brand’s reliability even in the most unique applications.
The high-profile swim event featured a temporary 10-lane racing pool installed on top of the field, along with a sophisticated filtration system and another 18-lane pool for warmups. More than 2 million gallons of water from the nearby White River were used to fill the competition and warmup pools after being circulated, cleaned and chlorinated. The water originated from a single fire hydrant just outside Lucas Oil Stadium.
Following the nine-day event, the water was removed from the facility and safely released back into the White River. With virtually zero water loss, and the water returned to the river much cleaner than when it was originally sourced, Shana Ferguson, chief commercial officer for USA Swimming, pointed to the overall sustainability of the event.
“it’s really a sustainability story,” she said. “Not only are we not wasting resources, but we’re also actually returning them cleaner than we got them.”
Expanding sustainability commitments
Looking ahead to 2030, Xylem recently revamped its sustainability strategy, significantly expanding targets for each of its three strategic pillars, including corporate water stewardship.
Responsible water stewardship is an increasing priority for the industrial sector and commercial building users. As a partner of choice, Xylem’s technology and services offerings can help corporate water operators reduce annual water demand, reduce business risks related to changing water resources and advance water stewardship. The company’s new goal, created to accelerate and measure progress in driving corporate water stewardship, sets three targets that directly align with Sustainable Development Goal 6 targets established by the United Nations General Assembly.
“Setting the new corporate water stewardship goal connects us to our purpose to empower our customers and communities to build a more water-secure world,” explained Austin Alexander, vice president, sustainability and social impact, Xylem. “The goal is designed to push our teams to be innovative and empowered to lead and to hold us accountable to deliver results to our stakeholders and communities.”
Xylem’s commitment to a more water secure future
“Older building stock presents unique challenges, and New England has a lot of older buildings,” Pratt said.
Meeting aggressive energy targets
Across the country, cities and states seeking to expedite building decarbonization are adopting clean energy mandates, setting ambitious climate targets and pursuing rigorous greenhouse gas reduction efforts.
In a move that aligns itself with a statewide goal of carbon neutrality by 2050, Boston Mayor Michelle Wu signed an executive order in 2023 banning fossil fuels in new city-owned buildings. The executive order also applies to major renovations of existing public buildings.
Moving forward, all new municipal buildings will be planned, designed and constructed so HVAC, hot water and cooking systems don’t connect to fossil fuels. The order also takes effect when structural work is planned for 75% or more of the building’s square footage. Any project that replaces a building’s heating, ventilation, air conditioning or hot water system, or cooking equipment must eliminate fossil fuel combustion.
A prior Boston ordinance passed in 2021, Building Emissions Reporting and Disclosure Ordinance 2.0, imposes enforceable emission performance standards for all existing large buildings, requiring them to achieve net-zero emissions by 2050. Non-compliance could result in large fines.
Even as governments dictate change, serious challenges remain. Industry professionals can’t help but feel the pressures of reaching a decarbonized reality, voicing real concerns about managing strict regulations around sustainable buildings. In Boston, where the city's buildings comprise more than 70% of the city's carbon emissions, property owners and developers alike are scrambling to get ahead of the city’s first emissions compliance deadline set to take effect this year.
Those concerns aren’t unfounded, according to Andrew Pratt, president of FIA Inc., New England Bell & Gossett representative, who said the commercial building sector is one of the most difficult industries to decarbonize due to its sheer scale.
As a consequence, building owners and facility managers need to consider how modern HVAC equipment will fit into the existing footprint. One space-saving solution is rooftop installations, but older roofs often aren’t designed to handle the weight of such equipment. Another challenge is noise ordinances in historic districts like Cambridge, Massachusetts, which could also impede rooftop HVAC installations, which emit a consistent hum during operation.
Despite the challenges that Massachusetts' bold climate policies present, Pratt said it’s exciting to be part of industrywide decarbonization efforts and to see how far these efforts have come: “I started my career replacing electric baseboard heat in Maine with gas and oil hydronic systems for heat and hot water. Now, those systems are being replaced with electric heating and hot water systems," he said. "It’s come full circle.”
The just-passed first-in-the-nation net zero carbon zoning rule in Boston echoes this sentiment and is a nod to the waves of change that are occurring. Under this new rule, most new developments filed after July 1, 2025, will be required to attain net zero carbon emissions when they open or the property owners will be fined, making it the most stringent carbon emissions rule for buildings in the nation, according to Mayor Wu.
Regional disparities
Decarbonization progress varies widely across the United States. While some cities and states, primarily those on the East and West Coasts, are prioritizing decarbonization efforts, climate change policies have been slower to gain momentum in other areas of the country.
In Illinois, the Climate and Equitable Jobs Act, which passed in 2021, requires the state to phase out fossil fuels and close municipal coal-fired power plants by 2045. The sweeping legislation package puts Illinois on the path to 100% renewable energy by 2050, making it the first state in the Midwest to mandate the transition and positioning it as a model for clean energy progress.
Yet, farther north in Wisconsin, the absence of state and local legislation around clean energy has commercial builders focusing on first costs over sustainability. In fact, when it comes to building codes, Wisconsin’s are among the most outdated in the country.
“There is no current legislation in Wisconsin pushing sustainability,” said Andy Meier, owner and president, Hydro-Flo Products, a Bell & Gossett representative, serving Wisconsin and Michigan’s Upper Peninsula.
The Department of Energy estimates that updating Wisconsin’s residential and commercial codes (which are based on 2015 standards) would reduce CO2 emissions by almost 9 million metric tons over 30 years.
Wisconsin isn’t alone. According to a 2023 report from the U.S. Green Building Council, more than half of all states are currently using energy codes from 2013 or earlier, meaning almost half of new commercial area built in the next four years will be no more efficient than 2013 standards.
Getting industry buy-in
Although the USGBC said the United States has all the tools it needs to reduce building-related emissions, bringing more attention to building decarbonization efforts requires engaging key industry players like developers, contractors, material manufacturers and building owners.
In recent years, BOMA has begun paying more attention to state advocacy because of legislation being enacted in California, New York and Washington state, where Chamberlain says they’re setting unrealistic goals.
“Take Local Law 97 in New York as an example, it’s unachievable. Our approach has always been ‘What is achievable?’ If the goal is investing in those properties to make them more sustainable and more high performing, then that’s where the money should go, not to cities’ general funds through taxes and all the rest.”
Nolan, meanwhile, says it will take years for the infrastructure to sustainably deliver the electricity needed to make a real impact on decarbonization.
What’s more, the financial burden in retrofitting existing buildings and incorporating advanced technology in new construction is extensive. While government incentives and subsidies can alleviate some of these costs, the initial investment required can be substantial.
For that reason, Xylem's Nolan believes decarbonization needs to happen in phases, rather than overnight. Achieving decarbonization goals requires a shift in both the way buildings are operated and maintained, he says. Innovative financing options, technological advancements and renewable energy sources are continuously improving the feasibility of meeting these goals.
“Taking advantage of government incentives is one thing, but educating and creating a culture of energy efficiency and sustainability among stakeholders is another entirely,” he said. “I foresee a growing focus on education and collaboration to help bridge the gap between design professionals, architects, engineers, government agencies, plumbers and contractors alike.”
The solutions we need to embrace to achieve sustainability and decarbonization
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Sustainability:
It’s good for business
In addition to regulations that serve as drivers in energy-efficient practices and methodologies, it often also comes down to the most fundamental incentive: the bottom line. Henry Chamberlain, former president and chief operating officer, Building Owners and Managers Association (BOMA), believes that sustainability is a business strategy for the commercial real estate industry.
"We have always pushed energy efficiency because that's the most controllable expense in an office building,” Chamberlain explained. “So, if you can reduce your energy usage and expenses that can help your net operating income in the bottom line for the building.”
Investing in carbon reduction strategies is vital for organizations because it reduces expenses in the long-term and improves brand reputation and competitive advantage, while contributing to a more sustainable future. Research shows that more consumers and tenants are prioritizing environmentally conscious brands and workplaces than ever before, and the failure to make these environmental changes could become a business liability.
"The widespread benefits of reducing greenhouse gas emissions, whether through cutting energy use, transitioning to cleaner energy sources or reducing waste cannot be overstated," said Joanna Frank, president and CEO of the Center for Active Design. "Not only can these changes mitigate the risk of climate change in the longer-term, but they can also support shorter-term reductions in energy costs and improved air quality, promoting improved health outcomes as well as economic resilience."