Crafting a Building Decarbonization Roadmap That Works

What is a Decarbonization Roadmap?

A decarbonization roadmap is a strategic plan or program that outlines the steps a company, building owner, or asset manager will take to mitigate the risk exposure of building assets and reduce greenhouse gas emissions over time. This plan typically includes strategies to reduce carbon emissions, such as improving energy efficiency, switching to clean energy sources, and optimizing supply chains, and considers funding opportunities and regulatory and organizational alignment. A comprehensive carbon reduction roadmap helps set realistic goals, identify key areas for improvement, and track progress toward a more resilient building portfolio.

Businesses are increasingly adopting decarbonization and sustainability programs as part of their business plans. The reasons are clear: regulatory compliance, cost savings, enhanced risk management, and bolstered reputation, to name a few.

By following a well-structured roadmap, companies can navigate the complexities of decarbonization more efficiently, ensuring they meet climate goals while also improving their buildings' energy efficiency and overall performance.

Why Do I Need One?

Global Trends

Regulatory changes and consumer expectations drive the global focus on reducing carbon emissions. Cities across the U.S. are increasingly adopting building performance standards (BPS) to manage and improve energy and emissions performance and track progress toward achieving net zero by 2050. Consumers also demand support, expecting companies to take meaningful action to manage and improve energy and emissions performance and track progress toward achieving net zero by 2050. Consumers also demand support, expecting companies to take meaningful action.

Physical and Transition Risks

Physical risks, such as increased wildfires, flooding, and other extreme weather events, are becoming more commonplace and exacerbate risks to buildings in areas prone to natural disasters. Transition risks, or business-related risks, such as policy changes and increasing energy prices, become greater when assets are not compliant with regulatory and building performance standards, which can affect stakeholder investments.   Having a decarbonization program helps organizations to identify and mitigate physical and transition risks to future-proof building portfolios.

Environmental Impact

Adopting a decarbonization roadmap contributes to global carbon reduction goals and has positive effects on local and global ecosystems. By reducing their reliance on fossil fuels, businesses can significantly lower their energy consumption, reduce greenhouse gas emissions, and improve ambient air quality. This supports climate initiatives and positions companies as leaders in sustainability.

"Decarbonization is another type of business risk that organizations need to assess and develop a plan to manage. Investing the time and resources to develop an actionable decarbonization roadmap - which includes a dedicated budget, assigned responsibilities and accountability for implementation, reporting frequency, and a communications plan - provides companies with a solid foundation to meet investor and stakeholder expectations and comply with evolving regulations while protecting asset value and enhancing resilience."  

-Emma Hughes, Director of Climate Risk Solutions, RE Tech Advisors

Benefits of Implementing a Decarbonization Roadmap

Business Benefits

One of the most compelling reasons to adopt a decarbonization roadmap is the potential for financial savings and long-term return on investment. Businesses can significantly lower operating costs by improving energy efficiency and reducing energy consumption. Additionally, a strong commitment to sustainability can enhance brand image, build customer loyalty, boost property value, improve air quality and occupant health, and make the company more attractive to investors who prioritize climate goals and risk aversion.  

New Markets

As the demand for sustainable products and services grows, companies implementing decarbonization strategies will be better positioned for business growth and market expansion.  Companies with a clear decarbonization strategy can gain a competitive edge, access new revenue streams, and strengthen their market position, unlocking new business opportunities in key areas.  

• Sustainability-Driven Partnerships – Meeting ESG criteria can qualify companies for contracts with corporations and government agencies that require sustainable suppliers.
• Carbon-Forward Positioning – Companies using clean energy or low-carbon materials can attract ESG-conscious customers and enter sustainability-driven markets.
• Access to Green Financing – Businesses demonstrating strong ESG performance may qualify for green loans, sustainability-linked bonds, and investment incentives.

Growing Trends

Advancements in technology are on the rise—and not slowing down! Technology plays a prominent role in the decarbonization process. Smart technologies such as AI, IoT, and data analytics enable companies to monitor and optimize energy consumption in real-time and streamline data collection workstreams for reporting, ensuring businesses stay on track with their carbon roadmap. Companies can continuously improve energy efficiency by integrating new technologies into their operations, which can provide a competitive edge amidst evolving market conditions.  Investing in new technologies will take time and effort, but it can be done.

"In designing a decarbonization roadmap, keep the business value proposition at the center of the analysis. Create a prioritized list of measures to achieve goals that are appropriate for your company and its operations. After benchmarking and establishing a baseline, the next step is to consider the practicality of implementation. Pragmatic implementation takes technical expertise to prioritize measures that are well designed and readily constructed, serviced, and maintained."

-Emma Hughes, Director of Climate Risk Solutions, RE Tech Advisors

Actionable Steps for Creating a Decarbonization Roadmap

#1. Initial Assessment and Planning

Conducting a greenhouse gas (GHG) inventory is the first step in creating a decarbonization roadmap. This provides a baseline against which to assess progress and helps identify the areas where the most significant emissions reductions can be achieved. Setting clear and achievable goals is essential for keeping the process manageable and focused. These should align with your business goals and look different for everyone—there’s no one-size-fits-all!

Determining exposure to transition risks such as BPS   provides a critical foundation to support prioritization of investments. Check state and federal mandates and use them as guidance to start your decarbonization roadmap and ensure your roadmap defines strategies to comply with regulations and building standards.

Another key part of the planning process is budgeting. Consider required upfront investments and anticipated returns of selected decarbonization strategies and prepare a budget to implement based on the resources required to be successful. This could include the cost of data tracking tools, headcount additions, or engagement of a third-party consultant or trusted partner. Keep in mind that additional costs will accrue once you identify opportunities for improvement in your buildings based on historical performance.

#2.  Leveraging Data

Leveraging data is a critical step in crafting a successful decarbonization roadmap. High-quality data provides valuable insights that help businesses make informed decisions about the most impactful actions to implement. By analyzing energy consumption patterns, emissions data, and operational metrics, companies can prioritize initiatives that drive the most significant reductions in their carbon footprint and mitigate exposure to climate risk. Determine which technologies, innovations, or energy improvements are needed, such as clean energy, building automation, or energy-efficient mechanical systems. Data-driven decision-making ensures that resources are allocated efficiently, enabling businesses to focus on strategies that deliver measurable results. Let the numbers guide your process—the proof is in the pudding!

#3. Developing the Roadmap

Once the assessment is complete, the next step is to identify key areas for improvement. Start small if necessary and focus on cost savings first, as this can help build internal credibility for the program and provide momentum to expand or accelerate decarbonization workstreams. A smart roadmap outlines a timeline with interim milestones and a clear action plan detailing specific steps for reducing energy consumption, incorporating clean energy, and optimizing supply chains  . Companies can build upon their initial successes as their efforts scale and they continuously progress toward their   goals.  

#4. Implementation and Monitoring

Executing the roadmap requires careful planning, coordination, and buy-in from key stakeholders. Align with management and stakeholders to review your decarbonization plan and adjust as needed. Set short- and long-term goals that are easily trackable to prioritize initiatives and report on progress.

Leverage data management tools and methods for monitoring progress, such as energy metering systems and sustainability software. Conduct regular reviews and updates to the roadmap and day-to-day operations, make optimizations that reduce energy use, and ensure that the company remains on track and can adapt to new challenges  or opportunities. Remember to start small and scale as needed   —your roadmap should be flexible and iterative.

#5. Continuous Improvement

Decarbonization is an ongoing process, not a one-time effort. Businesses should regularly assess their energy, emissions, and cost savings from energy-efficiency upgrades and explore new ways to offset energy use with cleaner energy sources. Continuous improvement and real-time adjustments based on new data and insights are key to developing a sustainable and meaningful program.

Common Challenges and Considerations

Several challenges can hinder the decarbonization progress. Understanding these obstacles is an essential step toward ensuring the successful implementation of decarbonization strategies:

• Lack of Knowledge and Expertise: Many organizations need help with the technical aspects of decarbonization due to a limited understanding of sustainability practices and emerging technologies.
• Limited Resources and Financial Constraints: Allocating sufficient budget and resources to decarbonization efforts can be challenging, especially for small to medium-sized enterprises.
• Commitment and Buy-In from Leadership: Without strong support from senior management, decarbonization initiatives can lack the necessary drive and focus, leading to stalled efforts.
• Complexity of Implementation: The intricacies of integrating new technologies, processes, and systems can be overwhelming, making it difficult to maintain momentum.
• Regulatory Compliance: Navigating the evolving landscape of environmental regulations can be challenging, particularly when aligning decarbonization efforts with legal requirements.
• Supply Chain Challenges: It can be difficult to ensure suppliers and partners are committed to decarbonization, especially in industries with deeply entrenched traditional practices.
• Measurement and Verification: Accurately tracking progress and verifying emissions reductions can be complex, requiring robust data collection and analysis methods.
• Budget: Setting aside a decarbonization budget is imperative to accommodate the roles mentioned above and implement more of the ideas in this article.

This is just a start- there’s much more to each of these areas, and you’ll want to dig deeper when you begin. By addressing these challenges head-on, with the help of a trusted partner, businesses can better navigate the decarbonization process.  

Organizational Change

Implementing a decarbonization roadmap can also lead to significant organizational changes that foster innovation and provide new opportunities for collaboration.

Creating New Roles to Drive Decarbonization

As companies embrace decarbonization strategies, the demand for specialized roles within organizations is growing. These new roles are essential for transitioning to more sustainable practices and ensuring the company meets its carbon reduction targets.

By focusing on key areas such as energy management, sustainability, and climate risk, businesses can build a strong foundation for long-term success in their decarbonization efforts. Key roles include:

• Sustainability Officers: Lead developing and implementing the company’s sustainability roadmap, ensuring alignment with corporate goals.
• Energy Managers: Oversee energy consumption, identify opportunities for efficiency, and implement energy-saving initiatives.
• Climate Risk Analysts: Assess and mitigate the risks associated with climate change, helping the company adapt to evolving environmental challenges.
• Carbon Accounting Specialists: Track and report the company’s carbon emissions, ensuring compliance with regulations and standards.
• Green Supply Chain Managers: Optimize supply chain processes to reduce carbon intensity and support the company’s sustainability goals.  

Team Restructuring and Skill Development

Implementing a decarbonization roadmap may require restructuring teams to better align with sustainability goals. Investing in training and skill development ensures that employees are equipped to manage new technologies and processes. This leads to a culture shift where sustainability is embedded in every aspect of the business.

The Role of Trusted Partners in Building a Successful Decarbonization Roadmap

Partnering with a trusted advisor like RE Tech Advisors, a Legence Company, can be a cornerstone of a successful decarbonization roadmap. With deep expertise in building robust sustainability programs, RE Tech Advisors helps organizations tailor solutions to their specific needs, ensuring measurable progress toward energy goals.

By leveraging advanced tools like Trove™, market insights, and a proven track record, RE Tech provides clients with the confidence to navigate complex challenges like emissions reduction, energy efficiency, and regulatory compliance. Their comprehensive approach empowers businesses to optimize operations, reduce carbon footprints, and unlock long-term value in a rapidly evolving market.

"There are unprecedented tailwinds behind decarbonization and sustainability.  Embracing bipartisanship and diverse areas of expertise can help companies to design impactful and value-accretive decarbonization roadmaps, build effective internal teams, and successfully engage external stakeholders."

-Emma Hughes, Director of Climate Risk Solutions, RE Tech Advisors

The Bottom Line

Incorporating a decarbonization roadmap into your business strategy is no easy feat, but it is a smart choice for planning ahead and essential for long-term success.  By following the steps outlined in this guide, companies and building owners can reduce their carbon footprint, drive growth, and mitigate risks to their assets. You are not alone- Sustainability Consultants, like experts at RE Tech Advisors, are here to help you build a comprehensive roadmap and guide you every step of the way. In this case-work smarter, not harder. Are you ready to start your decarbonization journey?

Work with Legence today!

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