Smart software experts amBX acknowledge the rise of the ESG metric and how their smart software can enable smart buildings with the use of digital twins to assist with this.
Environmental, Social, Governance (ESG) disclosure provides companies with a way to identify and understand key issues that aren’t typically accounted for on a traditional balance sheet yet have a critical impact on a company’s expenditures and expenses. It is a measurement that industry professionals, particularly investors, are beginning to look at to understand company value and long-term sustainability. They want to invest in companies with strong ESG scores as they are viewed as low-risk and more equipped to take advantage of opportunities.
An ESG score is a measure of a company’s exposure to long-term environmental, social, and governance risks that are often overlooked during traditional financial analyses. These risks include things like energy efficiency, worker safety, and board diversity, all of which can have significant financial consequences.
ESG has gained a greater deal of traction and awareness over the last decade. It is increasingly a focus for building owners and operators of large commercial buildings as they face pressure to make their buildings more environmentally friendly and remain competitive. There is a need to maintain tenants and hit criteria around strong corporate management to satisfy shareholders.
According to CBRE’s 2021 Global Investor Intentions Survey, over 60% of respondents say they have already adopted ESG criteria within their investment strategies, with the Americas, EMEA and Asia Pacific all leading the way with a stronger focus on ESG-related issues than in previous years.
In the UK, new compliance will state that many buildings have to present an ESG score in the not-so-distant future. The UK’s Financial Conduct Authority has made it mandatory for premium listed companies to disclose in alignment with TCFD for the fiscal year 2021.
This score will review aspects such as energy, Co2, water, wellbeing, and reporting. However, many large corporate businesses are yet to implement an ESG strategy and have no way of being able to collect all this data into one single source where a score can be generated. They are turning to their BMS providers, IoT software solutions and building/engineering consultants to ask for a solution. They know data is being collected throughout their building but need to figure out a way to capture the relevant data, pull it into a single source and create an accurate picture of current performance. This will lead them to understand where they need to improve.
Whilst some building management software platforms are starting to offer this service; they struggle to access data from the lighting system; therefore, they lack a full holistic picture. Lighting is the second-biggest consumer of energy in a building, accounting for approximately 40% of total usage; hence it is important this data is included for an accurate ESG score to be generated.
amBX has digital twin architecture that allows for physical spaces to be replicated in the virtual world. Lighting could be simulated and role-played to gain an understanding of the best energy strategy before applying it to the physical asset. Usage values, energy, efficiency, and carbon emissions for lighting can be extracted to support detailed ESG reporting. This can be used by software platforms and combined with data they have also collected to create an accurate report.
The result is that the client will then have data which correctly models how their current buildings are running. Adjustments to the digital models can also be used to predict improvements on each of their buildings to enable accurate future target reporting across their entire portfolio. All this knowledge and projections can potentially be achieved without any hardware being deployed in any of their buildings.
amBX SmartCore technology will inevitably help buildings to keep on top of their energy usage and help to improve their ESG score, which is paramount for the future of smart buildings, and their investors.