News analysis with BESA
Retrofi t – the two trillion-dollar question
The need for a national building retrofi t programme to cut energy bills and deliver Net Zero is at the heart of the general election campaign, but there are even wider economic and healthcare implications that should make it a top priority for the next government, says Ewen Rose, director of McGowen Rose Associates, a freelance writer and consultant to the Building Engineering Services Association (BESA)
T
he building engineering industry has been pushing retrofi t for decades, but there is renewed focus on the issue in the run up to the general election in July.
The political debate tends to focus on reducing the cost to consumers,
improving the UK’s energy security and investment in renewables, but a recent study backed by hundreds of international businesses and economic experts showed that there are even greater economic implications. A report published by the World Economic Forum (WEF) and the fi nancial
consultant PwC calculated that savings for international corporations could reach a mind-boggling $2trillion a year by focusing on energy effi ciency – with upgrading buildings at the front of the queue. The report, which was prepared ahead of the last annual WEF meeting of the global fi nance industry in Davos, Switzerland, included a range of “doable today” business actions that would slash demand for energy, boost profi ts, and cut carbon. ‘Transforming Energy Demand’ was backed by over 120 CEOs of large global
corporations and concluded that retrofi tting buildings alone could cut global energy demand by 12%. Buildings were responsible for 30% of the world’s energy usage in 2022 but
they also off er the greatest energy reduction potential of all economic sectors. WEF researchers calculated that energy intensity in buildings could be reduced by 38% using existing solutions. They also pointed out that retrofi tting buildings increased their value by up
to 15%. ESG (environmental, social and governance) reporting is another infl uential
market driver with clients under pressure to be fully transparent about their net zero strategies to bolster their corporate reputations. In addition, all newly leased commercial buildings will need to achieve EPC ratings of C or higher from next year – with existing leases required to meet the same target by 2028.
Landlords who miss these deadlines risk being left with unlettable ‘stranded assets’ while their retrofi tting neighbours can reap the commercial benefi t of the 15% uplift in value estimated by the WEF’s researchers. However, retrofi t to improve building performance should not be simply
driven by economics. What about the healthcare implications? The WEF research also shone a light on retrofi t’s wider benefi ts including
reduced staff absenteeism and improved productivity (because retrofi tted facilities are higher quality) and the creation of 3.2 million jobs worldwide to deliver retrofi t programmes. A leading respiratory illness expert has also claimed that building and
8 June 2024 Above: Ewen Rose, director of McGowen Rose Associates
facilities management could do more for fi x building related health problems than the NHS and other care services around the world. Dr Philip Webb, chief executive of Respiratory Innovation Wales (RIW), pointed out that air quality was responsible for higher numbers of excess deaths than the Covid-19 pandemic, cancer, heart disease and mental health combined, but receives just a tiny fraction of the public money and resources allocated to health and wellbeing services. According to data from Public Health Wales, Covid-19 was responsible for 38 deaths per 100,000 of the global population, smoking annually accounts for 180, and cancer 278, but air quality is responsible for up to 1,400 excess deaths per 100,000 every year. Webb also pointed out that there were 3,000 new occupational asthma cases
reported in the UK every year linked to the air quality in workplaces. “We are suff ering from a legacy of poor building design dating back to the 1960s and 70s,” he says. “With people spending, on average, up to 90% of their time indoors, IEQ is the most serious issue. If properly supported, facilities and building management systems could have a far bigger impact on health and wellbeing than the whole of the health and social care system.” So, investing in retrofi t is something of a ‘no brainer’ but how can we get the right political levers in place and the vital investment that would help the industry deliver the improvements that are clearly needed? HVR is supporting the Building Services Forum on June 6th at the Building
Centre in London. Join Ewen Rose and an expert panel at the event for a debate on the issues surrounding retrofi t and refurbishment – and analyse the barriers that are holding back progress.
¡ Book your place
https://bseeforum.co.uk/book-tickets/
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