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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.” Explore our Building Better Futures page > Bell & Gossett LinkedIn > View the hydrovar® X portfolio > Go Buildings | Solutions | Technologies | Environment | Communities | Partnerships Solutions The solutions we need to embrace to achieve sustainability and decarbonization Copyright 2025 Xylem. All Rights Reserved. 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."

How can we ensure future builds enrich their communities? We know a sustainably built environment actively contributes to local economic security, environmental sustainability and holistic well-being in the community. What’s less clear is how we can balance decarbonization, community resilience goals and financial considerations in many, many more future builds. Generating support for sustainability with all stakeholders, and getting those stakeholders to the table early on, will be central in accelerating this transition in commercial building decarbonization. As 2024 AIA President Dowdell noted, “Holistic and integrated design processes are essential to support social and human health. The AIA Architecture and Design Materials Pledge is designed to inspire a positive shift in the healing work that architects can do. The goal is to transform architects’ day-to-day practice and to work towards an equitable, resilient, healthy and zero-carbon future.” Forging connections among stakeholders is equally important. BOMA 360, the ASHRAE Learning Institute and Bell & Gossett’s LRSH are facilitating relationships through holistic learning programs that offer training, job resources, opportunities for networking and professional certifications. These industry connectors are vital, especially considering the important role younger generations will play as the drivers of sustainability and decarbonization. “Old guys like me are going to be gone in a few years, but it’s the younger generation that’s really taking this and moving it forward. You’re seeing the next generation of homeowners, or even rental properties, much more attuned to how that space is conditioned and the water’s heated,” observed FIA Inc. President Pratt. Connecting the industry COMMUNITIES PILLAR 5 Blueprint for Net Zero Fostering ownership, responsibility and accountability: Involving and educating communities on the value of sustainability initiatives Building sustainability into communities of the future At the core of sustainable buildings of the future are the communities and residents that occupy them. Communities make up the fabric of the built environment, and a community’s overall quality of life, social interactions, economic vitality and well-being hinge on the choices that we make today. "According to the United States Surgeon General, approximately 50% of adults in America report facing loneliness," noted Sara Karerat, managing director of the Center for Active Design. "Our built environment has a profound power to reverse this trend. We know that designing walkable, transit-oriented neighborhoods with mixed-use spaces that meet the needs of a diverse population creates more connected communities with more frequent social interaction, ultimately supporting human health and economic vitality." One example of this is recognized green build Levi’s Stadium (pictured right), a 1.85 million-square-foot stadium in Santa Clara, California. In addition to being a model of sustainability, Levi’s Stadium measurably contributes to community well-being. An economic analysis of the sports and entertainment venue released in its 10th year revealed that since it opened, the venue generated $546 million in personal earnings for local employees, and $470 million in revenues for local municipalities. Levi’s Stadium also contributes to the city of Santa Clara’s community-wide water conservation approach , which directly offsets potable water demand and meets 72% of municipal water use. The stadium’s recycled-water pressure booster system, which uses Bell & Gossett pumps , makes recycled wastewater available to flush toilets and to irrigate the natural grass field, green roof and other areas around the stadium. “We’ve learned that high-performance buildings have the potential to transform communities,” said 2024 American Institute of Architects President Kimberly Dowdell, NOMAC. “They’re proven to reduce energy consumption, improve air quality, and they offer benefits to human health and well-being.” Helping communities with high water vulnerability One cannot discuss the potential of high-performance buildings without considering the importance of water at the intersection of sustainability and efficiency. Water contributes to the livelihood of our ecosystem, economic stability, human survival and is vital for almost every industry – from agriculture to industrial to the energy sector. However, according to UNICEF, more than 1.4 billion people live in areas of high-water vulnerability, while approximately 25% of all water entering residential and commercial buildings, construction sites and industrial facilities is ultimately wasted. Water supply and the built environment are closely intertwined and as such, will need to be addressed when mapping out the communities of the future. At the forefront of the fight to solve water insecurity is Xylem. Through its corporate sustainability Watermark program , Xylem is setting the bar for more sustainable, water-secure communities in under-resourced areas worldwide by piloting innovative solutions that improve access to water, sanitation and hygiene, known as WASH. Last year alone, Xylem’s WASH solutions reached 3.8 million people , and through partnerships, technology and innovation, we’re scaling up for the future. “We’ve added a new, more ambitious target for 2030 to reach an additional 80 million people with climate resilient WASH access in water-insecure communities, adding to our existing 20 million goal by 2025,” said Alexander, Xylem vice president, sustainability and social impact. Maintaining community when natural disasters occur As we learned in the 2024 hurricane season, when the built environment takes a beating, the negative emotional, mental and physical effects are felt deeply across the community. However, Hunters Point in Cortez, Florida, has avoided weather-related damage and disruption through its commitment to decarbonization and use of renewable energy. Hunters Point is the first LEED Zero-certified, sustainable residential community in the U.S. Another sustainably developed, solar-powered Florida community, Babcock Ranch, not only came through Hurricane Milton with little damage but was able to provide shelter to an additional 2,000 people during the storm – proving that the benefits of sustainable-forward community planning and thinking are far-reaching. Balancing history, community and decarbonization By keeping the history of a place alive, Historic buildings help communities, and their members, connect to the past and to each other. Unfortunately, by nature, bringing these buildings into the 21st century for resource efficiency and support of decarbonization is often problematic. “Historical districts don't want to have the outside envelope of the buildings affected, and cities have noise ordinances and restrictions on what can be done,” said FIA Inc.'s Pratt. “There's plenty of work to be done to make these buildings more efficient.” Pratt’s observation only reiterates the importance of building reuse, particularly in a region like New England, which FIA Inc. serves. According to research from the National Trust’s Preservation Green Lab , it can take anywhere between 10 and 80 years to overcome the carbon debt that is incurred when an existing structure is replaced, even if the new building is highly energy efficient. Knowing how vital historic structures are to the identity and fabric of a community – and considering decarbonization strategies – will be an ongoing conversation within the built environment. Third-party building certification is bringing community to the table Green Building Initiative (GBI) is a nonprofit organization running Green Globes , a green building certification system that evaluates the environmental sustainability, health and wellness and resilience of commercial buildings. The certification is a roadmap for developer teams to ensure they’re considering multiple view impacts with every decision – from energy to efficiency to internal and external environment. The Green Globes certification process starts in the planning phases in a process GBI calls integrated design. “Integrated design makes sure everybody’s at the table, and it allows the community to be involved at the very beginning,” said GBI President Worden. “There's an entire section in our standard that rewards teams that do conceptual planning early on and involve a broad cross-section of stakeholders. There's a lot of thinking about what we're trying to achieve around sustainability, health and resilience in terms of benefits for communities.” “By providing third-party review of projects in a community, that can translate into higher levels of satisfaction for the local government and community members. Third-party certification provides accountability and reinforces confidence in the objectives of each project.” Vicki Worden, GBI president Explore our Building Better Futures page > Bell & Gossett LinkedIn > View the hydrovar® X portfolio > Go Buildings | Solutions | Technologies | Environment | Communities | Partnerships Partnerships Partnerships of the present paving the way to a better tomorrow Copyright 2025 Xylem. All Rights Reserved.

Blueprint for Net Zero Blueprint for Net Zero Blueprint for Net Zero Blueprint for Net Zero Blueprint for Net Zero Innovations Driving Decarbonization in the Built Environment Decarbonization in a nutshell In 2023, the global average carbon dioxide set a new record high of 419.3 parts per million. Atmospheric carbon dioxide is now 50% higher than it was before the Industrial Revolution. Carbon emissions are a major contributor to the natural greenhouse gas effect, which is causing temperatures to rise globally at a rate three times higher than they were in 1982 . It comes as no surprise then that the process of reducing, stopping or mitigating carbon dioxide in the atmosphere is a lofty goal. It’s also an intangible goal in that we can’t visibly see, taste, touch or smell many aspects of decarbonization, and yet, it’s arguably the most important facet involved in safeguarding our planet. From Apple to AT&T to Microsoft, to Anheuser Busch to Target, companies across the globe are pledging their commitment to decarbonization, churning out broad blueprints for achieving their respective sustainability and net-zero goals in their respective industries – but how good are these plans if they happen in a silo? The answer may be closer than we think... What if the solutions to decarbonization are already in place? What if the answers to our questions on how to achieve it are already in motion and simply require a shift in thinking? How feasible is it to reach our 2050 promises, let alone what we’ve committed to by 2030? All this and much more occupies the thoughts of some of the world’s leaders in sustainability and decarbonization. While each organization has different methods, strategies and approaches to driving toward an environmentally responsible future, here’s what we know to be true, and what stakeholders agree needs to happen: Collaboration is essential and almost every business sector will need to participate in decarbonization initiatives to create resilient communities and reduce carbon emissions. Decarbonization and reducing carbon emissions will not be achieved overnight, highlighting the tremendous need to reinvest in our own grid. Integrated system design beginning at concept is a critical element of sustainable builds. We are at the crossroads of policy, technology development and business, requiring continuous improvement and conversation to effect change. Building Better Futures Xylem’s Bell & Gossett launched the Building Better Futures platform in 2023 to advance innovative, energy-efficient hydronic, HVAC and plumbing solutions in North America. Since then, this platform has evolved to promote conversation around sustainability and decarbonization, including partnering with manufacturer’s reps and industry partners to understand how we can build better futures, while continuing to develop next generation systems and solutions. In the context of the six pillars that make up the Building Better Futures platform – Buildings, Solutions, Technologies, Environment, Communities, Partnerships – we examine the trends, challenges and themes that underscore what can only be described as a critical juncture. Almost nine years after the landmark Paris Agreement, just five years to the initial 2030 goals and halfway through a decade defined by the effects of climate change, we are closing in on a definitive period of decarbonization. This report strives to tell that story – where we are now and where we need to go to achieve a net-zero and decarbonization reality. The path to net zero is fraught with complexity. According to McKinsey & Co.’s Global Energy Perspective , we are still a long way out. For instance, even if all countries deliver on current commitments, global emissions reductions are not moving fast enough to keep temperatures consistently below 1.5°C pathway, and in fact, are projected to peak between 2025 and 2035 before even beginning to decline. Under the Paris Agreement, staying under 1.5°C is critical if we want to avoid the worst impacts of climate change. Enlarge Graph Many organizations have their own measurements or criteria for sustainability. These set the standard for an industry that is constantly accelerating and evolving. Below are a handful of industry conservation and environmental compliance standards and criteria. ASHRAE Standards ASHRAE standards are the recognized standards for system design, equipment performance, indoor air quality and energy conservation for ventilation system design, HVAC, indoor air quality, refrigeration and more. BOMA 360 The BOMA 360 Performance Program sets the standard worldwide for operational best practices in the commercial real estate industry. For building owners and managers who want to help their properties stand out from the crowd, there is no clearer mark of excellence than achieving the BOMA 360 designation. LEED LEED (Leadership in Energy and Environmental Design) is a globally recognized framework for design and construction of healthy, efficient and cost-saving buildings. All types of buildings can be LEED certified to indicate they meet high standards for sustainability. Now in version v5 , LEED is maintained by the U.S. Green Building Council. CFP Green Buildings Real estate services leader Cushman & Wakefield developed C&W Green Buildings. In partnership with CFP Green Buildings, this proprietary digital software assessment tool identifies custom decarbonization, retrofitting and cost savings opportunities for real estate investors and owners. WELL Building Standard WELL is a healthy building certification program and a performance-based system for measuring, certifying and monitoring features of the built environment that impact human health and well-being, through air, water, nourishment, light, fitness, comfort and mind. CARE Tool The CARE Tool allows users to compare the total carbon impacts of renovating an existing building versus replacing it with a new one and is part of the Architecture 2030 project . Green Building Initiative Green Globes Rating System GBI’s rating system is a science-based, three-in-one system that evaluates the environmental sustainability, health and wellness and resilience of commercial buildings and portfolios. Through the Green Globes certification program, the system incentivizes and rewards owner and occupant commitment to sustainability goals. Fitwel ® Fitwel® is a people-centric real estate certification platform committed to building health for all®, generated by expert analysis of 7,000+ academic research studies. 2026 High Efficiency Water Heating Standards In October 2026, the Department of Energy will require all newly manufactured commercial water heaters to have a minimum thermal efficiency of 95% for gas-fired storage heaters, and 96% instantaneous gas-fired heaters. Click the touchpoints to expand. Benchmarking starts the conversation that drives change. Henry Chamberlain, former BOMA president There is an estimated $800 billion worth of empty office space in just nine large cities around the world, underscoring the reality that owners, architects and developers must design with flexibility, modularity and evolving purposes in mind. Nearly two-thirds of buildings that exist today will still exist in 2050, emphasizing the need to enhance the efficiency of existing buildings to achieve sustainability goals. The world population is projected to be around 8.23 billion in 2025 and will peak in the 2080s at about 10.3 billion; population growth coupled with increased resource consumption will further stress the United States’ already strained power grid – the only major macro grid in the world that lacks a national-scale grid development program. From 2020 to 2060, the world is expected to add about 2.6 trillion square feet (241 billion square meters) of new floor area to the global building stock, the equivalent of adding an entire New York City to the world, every month, for 40 years. The implications of accommodating existing infrastructure, while navigating the largest wave of building and infrastructure growth, are still unfolding. Featured report contributors Throughout this report, you will find insights from various industry voices – including thought leaders, subject matter experts, organizations and industry representatives that are each, in their own respect, generating awareness of the importance of driving sustainability, efficiency and decarbonization in the built environment – and challenging the norm in the process. The current built environment As we envision the future of the built environment, we must start by thinking about the gravity and complexity of the present. CONSIDER THIS Explore our Building Better Futures page > Bell & Gossett LinkedIn > View the hydrovar® X portfolio > Go Buildings | Solutions | Technologies | Environment | Communities | Partnerships Buildings Today's commercial building landscape and the viability of sustainability taking hold Copyright 2025 Xylem. All Rights Reserved.

PARTNERSHIPS PILLAR 6 Blueprint for Net Zero Collaboration, conversation essential to creating framework for the future Partnerships are evolving to meet accelerating sustainability needs In countries prioritizing decarbonization, partnership-driven solutions have significant potential to advance sustainability in commercial building markets, according to a new report by the World Economic Forum and McKinsey Sustainability. We’re already seeing the power of partnerships to make sustainability progress. Take for example the former Packard Motors Building at 787 11th Ave. in New York City. Renovation and expansion led by a collaboration among the developer, architect, real estate management firm and investors, has transformed the building into a 10-story life sciences and commercial hub. It is now counted among the assets of the LifeSci NYC initiative, an investment of $1 billion in the city’s life sciences industry led by the New York City Economic Development Corporation. Part of this building’s success story is also the relationship formed early on by the developer and its diverse tenants, which include Mount Sinai healthcare system, Jaguar/Land Rover, Pershing Square Capital Management and Dwight Capital. HVAC and plumbing consultation and sourcing for the redevelopment was handled by Wallace Eannace , a Bell & Gossett representative, which helped ensure the building meets New York City Local Laws 97 and 154 requirements for reduction of fossil fuels use and emissions. At Wallace Eannace’s recommendation, highly energy-efficient Bell & Gossett pumps, drives and heat exchangers were specified and installed. Smaller-scale partnerships, big results Local partnerships are equally important in driving community impact and fostering sustainability. While often executed on a smaller scale, the results can be far-reaching. In Milwaukee, for instance, a $3.4 million grant from the U.S. Department of Energy will fund an initiative to build 25 net-zero energy ready homes. In partnership with the Environmental Collaboration Office, the plan champions making Milwaukee a safe, affordable and innovative place to live. As part of the homes, all electric appliances and highly efficient heating, ventilation and air conditioning systems could be fueled by a single renewable energy system like solar panels, while portions of the home could be built off-site in climate-controlled environments. ECO Director Erick Shambarger describes the creation of net-zero energy homes as a “big, bold, audacious challenge,” which by and large can be used to sum up both the urgency and the importance of partnerships to help embark on projects of this magnitude. “To meet ambitious climate goals, AIA must increasingly align with allied industry organizations of owners, contractors, manufacturers and other design professionals to tackle the complexities of sustainability, from meeting energy and carbon emissions reductions targets, to achieving climate adaptation and resilience, to addressing equity in the built environment of our communities.” Kimberly Dowdell, 2024 AIA president Partnerships of the future Future success in achieving more sustainable built environments will depend on our ability to form larger, even closer partnerships that unite diverse project stakeholders around well-defined sustainability objectives. The AIA 2030 Commitment is one successful model of this. A national framework developed to guide firms toward achieving net-zero emissions by 2030, more than 1,350 firms have already joined, demonstrating the profession’s commitment to not only real change but to holding themselves accountable to tracking their progress. Collaborations could also support each member in staying ahead of evolving regulations that are a must if we are to meet 2050 sustainability goals. “In public housing and private property management, firms are keenly aware of the need to reduce building emissions, but there’s one person spearheading the sustainability initiative to make sure they are complying with local codes,” said manufacturer FIA Inc. President Pratt. “A little bit of offense, a little bit of defense – you don't want to be called out for being a non-compliant, bad neighbor.” Even so, acknowledging the potential hurdles that collaborative partnerships may face – such as regulation – is just as important, reiterating the importance of coming together from all sectors: “While there has been a lot of progress in some sectors, there needs to be more of a push from regulation to get toward true decarbonization,” suggested Xylem's Max Storto, lead innovation analyst at Xylem Innovation Labs. “You also have to worry about the laggards, not just support the leaders. And that's going to take some time.” Adaptive reuse gains momentum The partnerships of the future have high potential for managing the complexity of sustainable adaptive reuse. Adaptive reuse saw a significant increase in 2023 in the U.S., and that surge is expected to continue in the coming years, according to RentCafe’s Market Insights . However, though adaptive reuse and major retrofits can help minimize the impacts of demolition and new materials production, technical understanding of how to decarbonize reuse and retrofit projects can be a barrier. That’s where partnerships can provide a solution by providing the education and training integral to this movement. “Three-billion-plus square feet of office space will be repurposed in the coming years,” said Chamberlain, former president of Building Owners and Managers Association. “We're going to be the learning laboratory. When people have problems to solve, they lean on their associations to find out how others are successfully tackling the issues.” Deep technical understanding of decarbonization solutions held broadly across building industry partners is essential for meeting future decarbonization goals. Bell & Gossett is providing that technical know-how to for engineers, contractors, field technicians and other hydronic HVAC and plumbing professionals through its Little Red Schoolhouse , an education program that uses best practices in adult learning in classroom, mobile presentation and online settings. Partnerships generate strategic collaboration and collective action. This is foundational within the industry as well as to industry-adjacent priorities, such as decreasing barriers to building workforce entry, and developing products and technologies that are sustainable alternatives to those in the market now. 00:00 / 00:51 Regarding the Little Red Schoolhouse, Bill Fischer, senior manager of training and education at Xylem, joined a recent ESCO HVAC podcast to discuss the benefits of industry education. Another critical partnership: Workforce education and training “One of our industry’s greatest challenges is finding enough skilled and passionate people to design, build or renovate, operate and maintain zero carbon emissions, healthy and sustainable buildings,” said ASHRAE President Knight. “Global building stock will double to 5 trillion square feet by 2060. We’re going to need a very large and capable workforce.” A combination of COVID-19, the Great Recession and an older generation that’s preparing to leave the industry is creating what BOMA’s Chamberlain sees as the No. 1 issue facing the built environment, affecting almost every sector of the workforce. According to the most recent Associated General Contractors workforce survey , 88% of construction firms are having a hard time finding workers to hire, and the National Center for Construction Education Research projects that 41% of the current construction workforce will retire by 2031. From the HVAC and plumbing side, there’s currently a shortage of 110,000 HVAC technicians, with about 25,000 technicians leaving their company each year. Navigating these realities is complex but Chamberlain sees the potential for attracting new talent by embracing creative solutions and working within existing parameters. For instance, he noted: “We (BOMA) think that 529 funds should be broadened to career development, and we think that is going to bring people into jobs in real estate in a variety of ways that’s going to help that workforce.” As a tax-advantaged college savings plan that can be used for qualified education expenses, this would open the door to propelling commercial real estate into the future. Recently, BOMA also partnered with 14 different real estate groups to develop careersbuildingcommunities.org , an interactive career online tool that connects potential applicants to opportunities in anything from engineering, design, architecture and lending to property management, development, investment and construction. From Chamberlain’s perspective, it’s not just about attracting talent but attracting them in the right way to tell the story of why these careers are so important and can be enticing to young people. Bell & Gossett is equally invested in this, partnering with ASHRAE to bring in new talent through its Young Engineer’s Program, and introducing its first-ever female offering at its renowned LRSH this year to help foster the education and advancement of female engineers, contractors and prospects in the field. Workforce development partnerships among businesses, educational institutions, industry associations like ASHRAE and government like these are the engine that will continue to supply a diverse pipeline of people qualified to meet the evolving demands of building sustainably. Xylem’s technical training manager Taylor Goade shares his perspective on the first-ever female offering. New educational offerings promote deeper understanding of pump systems, climate tech The Hydraulic Institute (HI), an association of pump manufacturers and suppliers, recently announced the launch of its Hydraulic Institute University (HI U) , an educational initiative that builds upon HI’s century-plus expertise on pumps and pump systems. As part of the new offering, HI U will offer hands-on training from introductory to advanced levels for pump system professionals. Other offerings at the academia level like the expansion of climate-specific degree programs at universities will help fuel the next generation of climate innovators. Past, present and future: Opportunities for the built environment Buildings | Solutions | Technologies | Environment | Communities | Partnerships Interested in more thought leadership like this from Bell & Gossett? Explore our Building Better Futures page Follow along on Bell & Gossett’s LinkedIn to learn more about our initiatives and products hydrovar® X-enabled portfolio View our Instagram | View our Facebook | Contact a rep Copyright 2025 Xylem. All Rights Reserved. “Collaboration is essential if we're going to meet the targets we've set and all those commitments we've made,” ASHRAE’s Knight said. As we look toward the future and what the next 25 years may hold, it is clear that the road to get there is long and winding. Some players in the commercial building space are inherently skeptical, questioning the viability of many sustainability and decarbonization plans, while others are fervently optimistic, betting on a world that’s on the precipice of massive change yet still burdened by an infrastructure that’s decidedly stuck in the past. However, what our research also uncovered is that the landscape is ripe with opportunities and innovations. Collaborations that are happening on education and training, with government partners and industry stakeholders, prove that there is not only a path forward but a collective willingness to do so. Smart technologies, digital tools and remote devices are coming out at a promising rate, meaning the next generation of workers, builders, architects, contractors and engineers will be more efficient, agile and poised for change. Whatever the future may hold, the overwhelming conclusion is that the landscape – while still being defined – is one teeming with opportunity.

Blueprint for Net Zero TECHNOLOGIES PILLAR 3 The harmony of function and feasibility: Striking a delicate balance with technology in the built environment Assessing the viability of new technologies From remote monitoring devices, smart control systems, generative AI, electronically commutated motors and electric vehicles, it’s an exciting time for technology in the built environment. It’s also an incredibly tumultuous time. While new technologies are taking off at record speed, it still begs the question whether the built environment is ready for it. The Paris Agreement, for instance, has propelled a surge in EV growth and yet, supply is scaling faster than our ability to keep pace. Our infrastructure is ill-equipped for some of the technological innovations taking place, even while the potential ROI of doing so could be exponential. According to a Lawrence Berkeley Laboratory study , even greater use of technology can reduce the growth of carbon emissions by one-third. The technological landscape Investment in new technologies will continue to constitute a large area of opportunity, with climate tech investments alone soaring to $56 billion between 2020 and 2021 and experts predicting that global spending on the transition to more livable and resilient communities could reach $275 trillion by 2050 . Clearly, there is an appetite for new tech among investors and entrepreneurs. As the innovation manager for Xylem’s global innovation team, Kyle Schoenheit focuses on integrating innovation through disruptive technology or business models, supporting incubation with third-party partnerships that have high potential for growth. No stranger to the hunger for new tech, Schoenheit also suggested that technological innovation within the building sector is directly tied to the industry’s willingness to change, and no one solution alone can address water quality, sustainability and decarbonization. Rather, it requires a strategic blend of technologies to drive impact and assess the specific needs of a building or project. For instance, Xylem Innovation Lab (XIL) projects that leverage technologies that are scalable from a residential unit to a larger commercial building, taking used and potable water that has been used in an office space, or utility water that can be recycled or used for residential, can significantly reduce water consumption. On average, large commercial buildings (over 200,000 square feet) in the United States use approximately 20 gallons of water per square foot . On the digital front, technologies like Building Information Modeling and remote monitoring that communicate with Building Management Systems, as well as digital construction technologies, are fostering holistic design and accelerating the industry at a rapid pace by connecting different members of the built environment community, helping them communicate in real time and driving efficient resource management. Other technologies like AI- and machine learning-based solutions can complement decarbonization efforts to not only optimize operational aspects but embed efficiency into everyday practices and programs. Tools like Xylem’s optimyze® condition monitoring system and cloud-enabled Avensor can be paired with pumps and accessed remotely to proactively assess equipment status and extend longevity – ideal for operators in remote areas or with fewer resources. Ultimately, the application and deployment of such technologies is “allowing our industry to communicate to others in a more personal, impactful way about the importance of our work and the vital role our industry plays in improving sustainability, increasing energy efficiency, solving the climate crisis and improving indoor environmental quality for everyone,” said ASHRAE President Knight. Spanning the globe Across the globe, technological deployment is occurring, emphasizing that decarbonization and sustainability is a worldwide undertaking. Take Scottish Water . Responsible for providing water and wastewater services to more than 2.6 million homes and 150,000 businesses across Scotland, the utility is a model in efficiency, thanks to the deployment of remote monitoring technology to help reduce energy use and unplanned maintenance. With a commitment to achieve net-zero emissions by 2040, technology that favors ease-of-use over complexity is a surefire way to drive adoption. “If the technology is designed right, and it’s easy for operators to access and use, then it can be easy for operators to adopt,” said Nathan Wield, wastewater operations west manager for Scottish Water. “It’s when we make it complex and cumbersome that you get pushback and rejection. With Avensor, everything makes sense, and even the graphics are easy to understand.” Wisconsin-based Hydro-Flo Products Inc. shares a similar sentiment, that technology that gives users insight into what’s going on with systems rapidly and can adjust in real-time is crucial to overall system health and longevity. “If we can make it easier for users to select that high efficiency-drive included product by integrating it into our system sizing programs and tools,” individuals would be more receptive to it overall, suggested Hydro-Flo owner and president Meier. Acknowledging the limitations Whether it’s new technology or investing in existing technologies that can help system buildings and operators plan better, what all these projects have in common is working within existing parameters to optimize and reclaim space and footprint. “Some of the technology is not necessarily new innovation or discovery of a new technology but rather changing its purpose into an integrated solution that can be easily installed and optimized within a current water or HVAC system or a reclaimed system. It's just in a new form or function of footprint within it,” said XIL’s Schoenheit. Even so, the desire to move to electrification overnight is in direct conflict with the availability of required components in the supply chain to do so – and will require a gradual, managed transition. For instance, under a new state regulation in California , 35% of new 2026 car models sold must be zero-emissions, with a lofty goal of ramping up to 100% in 2035. However, powering these vehicles means the state must triple its power generation capacity, posing a universal paradox: How can new technologies be deployed if the infrastructure and the grid isn’t prepared for it? Across the building community, professionals are increasingly puzzled by this and how to strike the balance between what's available and what’s achievable. FIA Inc. President Pratt echoed this, “How do you double or triple the electricity supply to a community without a significant increase in just going in and adding more infrastructure?” Knowing that energy demand is expected to grow 18% by 2050 , we need to demonstrate gaps in our current reality so that we may identify alternatives to and opportunities within that reality. Areas of opportunity Embracing clean technologies Wider adoption of green technologies in the pursuit of healthy buildings, both new construction and retrofit projects, hinges on collaboration. A national coalition of nine major cities and counties recently enacted a turnkey building decarbonization program – Building Decarbonization In-A-Box – aiming to rapidly scale up the deployment of clean-energy technologies across millions of small commercial and multifamily buildings with persistently high carbon footprints. While collaboration like this is not a new phenomenon, this represents one of the first initiatives to demonstrate how funding from the Greenhouse Gas Reduction Fund will mobilize capital for on-the-ground decarbonization projects in communities across America, suggesting that perhaps the area of opportunity is more complex than just the availability of said technologies, but a combination of business, economic, regulatory and societal factors. After all, it is a “competitive strategy to have a green machine,” according to Chamberlain of Building Owners and Managers Association (BOMA). From the building owner or manager perspective, being able to demonstrate tangibly how you are outperforming others in the marketplace is crucial to quantify technological investment goals. “When we're talking HVAC/R, many times we don’t think outside of our box, but if you think about a building, it involves almost every business sector, education sector, every sector of society,” said ASHRAE President Knight. Redefining innovation to impact sustainability In a recent assessment of the current state of our workforce, the U.S. Chamber of Commerce found that there are 7.7 million open jobs in the U.S. but only 7.1 million unemployed workers. Navigating this reality means that employers will need to prepare a new generation of laborers to meet these industry demands. This presents another area of opportunity in the form of education and training around new technologies. ASHRAE is an international society of more than 50,000 HVAC professionals from over 132 nations. Founded in 1894, the organization stays on the cusp of technological trends. Its most recently established Artificial Intelligence Multi-Disciplinary Task Group focused on the technical application of AI and how to leverage it to improve member experiences is just one example of that, on par with McKinsey’s Technology Trends Outlook 2024 . AI may be the key to the workforces of the future, with a recent JLL report finding that current AI capabilities, such as image recognition, data modeling and text generation, can potentially optimize an estimated 65% of sustainable asset improvement-related tasks, helping building owners and operators make more informed, data-driven decisions when it comes to their retrofit and building strategies. Intelligence and interconnectivity driving holistic design While retrofit presents a cost-effective design option, the International Energy Agency estimates that only around 1% of buildings are retrofitted each year, suggesting there is still a missed opportunity in this regard. Aside from technologies like hydronics that make integration in existing buildings more manageable, a focus on holistic and integrated design processes is equally as important. Digital software like global commercial real estate firm Cushman & Wakefield’s Green Buildings empower building owners and managers to identify opportunities for reducing their environmental footprints – driving smarter building design as a result. Hydronics as a tried-and-true technology Some offer that one of the integral technologies to advancing sustainability and decarbonization has in fact always been here. Mike Licastro, manager of training and education at Xylem Bell & Gossett’s Little Red Schoolhouse (LRSH), regularly teaches the potential of hydronic technology through hands-on training and education. Whether it’s starting out from scratch or reusing the existing equipment in a building, Licastro offered that hydronics have been around for centuries as a proven heating and cooling solution. Others are exploring the value of incorporating hydronics into more modern applications, such as data centers, as another way to prove the technology’s long-term viability. While data centers use huge amounts of energy and water, water-based systems like hydronic systems contain significant thermal management properties . On the topic of data centers, Green Building Initiative President and CEO Vicki Worden suggested that having integrated design conversations that involve all stakeholders can be particularly beneficial. 00:00 / 00:38 Mike Licastro Manager of training and education Xylem Bell & Gossett featured on ASHRAE Journal Hot Air Podcast “There’s a lot of creativity and innovation that can happen if we get together and talk about what our challenges are. For instance, if we can get a data center located in a community with available power and position it so that any heat that comes out of the building can be repurposed to the heating needs of an adjacent building or community member,” said GBI's Worden. Sustainability and energy efficiency Solutions like Bell & Gossett’s hydrovar® X-enabled smart pumps are critical in the push to sustainability and energy efficiency, representing the culmination of years of pushing new technology now at the forefront of business investments. Combining industry-leading pumps with Xylem’s innovative Smart Motor technology, this prepackaged solution is one example where sustainability is the ultimate benefit, but efficiency is the goal. Embracing technology goes back to the business strategy and what makes sense from an investment perspective – or how one can make the business case for new technology. Explore our Building Better Futures page > Bell & Gossett LinkedIn > View the hydrovar® X portfolio > Go Buildings | Solutions | Technologies | Environment | Communities | Partnerships Environment The realities of our environment and climate change Copyright 2025 Xylem. All Rights Reserved.

Transforming water and energy conservation Innovation that’s already underway will have an essential role in enabling decarbonization in the built environment. Hydronics technologies will continue to be developed and deployed in advanced solutions that reduce water use in buildings. “In some cases, the issue facing commercial buildings is water quality, not water scarcity,” said Xylem Innovation Lab's Schoenheit. “Individual water solutions and technologies are being merged to create large-system solutions.” Air-to-water systems also have applications across the globe for addressing water quality and scarcity. This cutting-edge technology extracts water from the air and significantly reduces use of fossil fuels and CO2 emissions. These systems have solar and wind energy synergies, too. Producing clean water with less energy SEAS is a pioneer in designing and building machines and systems that produce clean water from air. The Swiss company is participating in technology innovation discovery with Xylem Innovation Labs. “High-quality tap water is becoming more scarce worldwide,” noted Graev. “We saw an opportunity to produce clean water in a way that balances low energy consumption and environmental sensitivity.” One highly successful integrated water-energy solution is a SEAS application at Hotel Viva in Villahermosa, Tabasco, Mexico. SEAS integrated its technologies into the hotel’s HVAC system to reduce fossil fuel consumption and provide the highest quality water for drinking, food preparation and ice making. By sending hot air produced by the system to the hot water boiler and cold air as supplemental air conditioning to certain areas, the integrated system delivered a 70% savings in energy costs to the 154-room hotel. A study published in MDPI Applied Sciences Journal calculated ROI for this application to be 100% within 24 to 36 months. SEAS and Xylem successfully collaborated on a similar project at a five-star hotel in Lake Garda, Italy. ENVIRONMENT PILLAR 4 Blueprint for Net Zero Finding opportunity among the natural environmental stressors Aiming high on water and energy conservation in buildings In a world marked by extremes – extreme urban population growth, temperatures and resource distribution – the need to live and build sustainably to effect change in our environment is urgent. Demand for HVAC systems is projected to rise significantly, according to a new commercial HVAC market report by Guidehouse Insights . The real estate sector is responsible for a staggering 40% of annual global CO2 emissions, while the U.S. Energy Information Association projected a 3% increase in electricity consumption in the commercial sector last year alone due to warmer temperatures and increased demand from data centers. In our race to achieve global reductions in emissions and use of water and energy, reimagining our cities and the environments that we live in is mission critical. And, at the nexus of water and energy are hydronic systems. Demonstrated to routinely outperform traditional systems , hydronic systems will be instrumental to fast-tracking decarbonization with indoor heating and cooling. Cost/SF comparison of studied buildings In terms of lower energy use, cost and life expectancy, hydronic systems outperformed all other systems by as much as 24%, according to a Xylem cost analysis analyzing seven elementary and middle schools. Power challenges creating more opportunities When we think about the greatest challenges facing the built environment, climate change tops the list, according to the Deloitte-ThoughtLab Global City Survey . The effects of climate change impact both the built and natural environments: warmer temperatures will create more demand for energy as people seek to cool their homes and businesses and natural weather events like droughts will exacerbate the water supply. “Power demand is one of the bigger challenges that impacts not only energy but water, because we need power to move water,” cautioned Green Building Initiative (GBI) President Worden, who explained that designing around these challenges requires a lot of “multidimensional thinking.” At the same time, Worden offered that solving challenges of this magnitude fuels a highly opportunistic landscape: “The challenges we're facing are driving more innovation than I’ve seen in 30 years of working in this industry.” Conserving more water The challenge of water scarcity is driving innovation in water reuse and recycling. At least 25% of people worldwide already live in a country with high water stress, and global use of water is expected to increase by up to 25% by 2050, according to World Resources Institute . However, the Green Building Council notes there are just 43 buildings across the globe certified as LEED Zero Water, which indicates the building has a potable water use balance of zero over 12 months. How do we move forward to close this gap? Public utilities and commercial buildings are tackling the issue through water reuse, and San Francisco is leading the way. In 2015, the city passed legislation that requires all new buildings larger than 100,000 square feet to have onsite recycling systems. The aim here is to make water recycling for non-potable use less costly than continuing to buy and use potable water for every type of water need. The San Francisco Public Utilities Commission, which projects its Onsite Water Reuse Program will save 1.3 million gallons of potable water per day by 2040, says there are 48 onsite water reuse systems currently in use and another 29 projects planned. Of those in use, six are blackwater systems, and 25 are graywater systems. Using a blackwater system at its headquarters building, the commission has reduced its own imported potable supply by 40%, while the reclaimed graywater system at Levi’s Stadium in Santa Clara, California, provides for 85% of the stadium’s water use and is used for toilet flushing and irrigation of its green roof. Transitioning to renewable energies Success in meeting future decarbonization goals depends on the ability to reduce fossil fuel use. Currently, at least 34% of all energy used in commercial buildings involves combustion of fossil fuels, according to the U.S. Energy Information Administration . There’s a fundamental energy transition ahead for the commercial building market. The flexibility of hydronic systems to integrate with various renewable energy sources will make it a strong choice for commercial building retrofits and adaptive reuse in the coming years. As we make this transition, the best decisions will be informed by data. “Owners of older buildings are trying to figure out a strategy that works for them,” said 2024 President Chamberlain of Building Owners and Managers Association (BOMA). “There’s a whole range of options, but you’ve got to have data. Data will help drive the decisions.” Knowing that nearly 65% of commercial buildings built before 1990 utilize hydronic heating systems makes an even stronger case for the retrofit of existing buildings by implementing energy-efficient equipment and swapping out older mechanics. Though solar power currently accounts for 6% of global energy, in 2023 the National Renewable Energy Laboratory tracked a 91% year-over-year increase in photovoltaic system installations worldwide. NREL says solar power accounted for 54% of new electric generation capacity in the U.S in 2023. As commercial buildings prepare for energy transition, they have the option to connect their hydronic systems directly to photovoltaic panels with technology available now. The flexibility of hydronics allows building managers and owners to immediately reduce their carbon emissions and draw less on traditional power grids—a critical energy-saving advantage especially in water-stressed areas. To accelerate energy transition now and in the future, Xylem is partnering with LORENTZ on worldwide distribution of solar-based pumping technology that reliably delivers water at lower cost, even in remote locations. Hydronic pumps powered by solar Explore our Building Better Futures page > Bell & Gossett LinkedIn > View the hydrovar® X portfolio > Go Buildings | Solutions | Technologies | Environment | Communities | Partnerships Communities Creating a sense of belonging Copyright 2025 Xylem. All Rights Reserved.

Blueprint for Net Zero SOLUTIONS PILLAR 2 Leveraging a holistic approach to realize decarbonization, sustainability targets Redefining innovation to impact sustainability As the commercial building sector strives to reduce energy use and operational costs related to plumbing and HVAC systems, water technology providers have shifted their focus from looking at the energy efficiency of single components or products to optimizing efficiency throughout the entire system, i.e., holistic solution design. High-efficiency pumps and drives offer one of the biggest opportunities to achieve smarter, more efficient buildings. Today, integrated motor and drive solutions like Xylem’s hydrovar® X -enabled or e-90E Smart Pumps are poised to transform the built environment. The e-90E's IE5 ultra-premium smart motor and variable speed drive solution, for instance, can reduce motor power up to 70% by ensuring the pump only operates at the required speed, depending on the demand variations of the system. Such customizable pumping solutions present significant energy-saving opportunities. Additionally, they are free of rare earth metals, addressing environmental concerns and minimizing product availability challenges. Other smart components like variable speed drives can drastically enhance the adaptability and flexibility of HVAC systems. One of the key advantages of VFDs is the ability to adjust pump speed and staging in relation to actual demand or pressure changes. By providing what is required, when required, a user can realize significant cost savings. Additionally, modern pressure boosting packages afford the opportunity to apply a few smaller pumps in parallel, which spreads out mechanical wear while also providing redundancy in the case of planned or unplanned downtime. To align with these efforts and evolving greenhouse gas emission reduction policies, manufacturers continue to introduce more efficient solutions, often relying on connectivity and IoT technology to power the shift to decarbonization. Among the latest trends in service solutions to help optimize building operations and minimize carbon emissions are: Digitalization Modern HVAC technology Water supply and boosting The evolution of smart building technology is an essential step in addressing the challenges of energy consumption and environmental sustainability in large commercial buildings. As technology continues to advance, the industry can expect even more innovative solutions and increased adoption of these systems to create smarter and more comfortable buildings. hydrovar® X smart pump solutions “A focus on end-to-end solutions that holistically address the built environment will be crucial to effectively address the challenge of decarbonization,” said Xylem’s Jim Nolan. Xylem setting the bar In 2020 alone, Xylem’s high-efficiency technologies and digital solutions collectively helped customers reduce their carbon footprint by 0.68 million metric tons of CO2, equivalent to keeping 150,000 cars off the road for a year. Scaling innovation As climate change exacerbates drought conditions around the world, harnessing new sources for water can help address an urgent problem. Imagine a device that can extract moisture from air to provide drinking water, control humidity in indoor spaces or scale water production capacity. That’s just one solution startups working with Xylem Innovation Labs (XIL) are bringing to market to address global water issues. Launched in 2022, XIL created its accelerator program to expedite the introduction of innovative technologies to tackle growing water challenges worldwide. So far, the program has supported 35 companies from 13 countries. This collaborative approach is designed to address the pain points of technology adoption in the water sector. By putting strategy before technology, XIL is identifying solutions that align with strategic priorities to deliver measurable value and create momentum for further innovation. Joule Case , a member of the 2024 accelerator cohort, saw the value in adopting that mindset. XIL initially tapped the company, which provides modular energy supply systems, for its potential in the dewatering pumps market, but has since identified other potential markets, including commercial building services. “Part of our strategy is to first try to understand the company’s technical efficacy. As we begin to integrate the solution, there’s always some adjustment to fit the technology across applications,” said Kyle Schoenheit, XIL’s innovation manager, who has worked in various capacities with Xylem and its brands for more than 25 years. “Our end goal is to help bring meaningful solutions to the user.” “Partnering with Xylem has enhanced SEAS’ credibility and opened up our network of potential customers and distributors,” said Larry Graev, a founding partner of Société de l'Eau Aérienne Suisse (SEAS), which develops atmospheric water generation systems. Explore our Building Better Futures page > Bell & Gossett LinkedIn > View the hydrovar® X portfolio > Go Buildings | Solutions | Technologies | Environment | Communities | Partnerships Technologies Opportunities and obstacles associated with new and emerging technologies Copyright 2025 Xylem. All Rights Reserved. Innovations impacting the future of HVAC The digital transformation of water offers unprecedented opportunities to advance sustainability. The next five years will see rapid acceleration in the use of digital tools within the commercial HVAC sector , surpassing advancements of the past decade. There are a flurry of new HVAC innovations and technologies defining the industry’s future. For instance, phase change materials (PCMs) used in HVAC systems can absorb and release large amounts of thermal energy as they change state from one phase to another. PCMs are used in thermal energy storage systems to store heat or coolness for later use, reducing the need for continuous operation of compressors and electric heating elements during peak times. App-based solutions make it even easier to save energy, and track cost savings. The powerful insights and functionality these tools afford create significant cost, energy and water savings. While there aren’t any regulatory drivers yet for load management or app-based resources in commercial applications, this type of connectivity is gaining in popularity. As our world moves toward more energy-efficient choices, the water heating industry can help lead the way with research, customized solutions to make the product applicable in a variety of settings and support for building professionals.