By 2050, 50–65% of today’s buildings will still stand, yet, at best, they may comprise only 35% of the total future building stock. Now, ask yourself: How durable are the buildings I design, construct, own or occupy? Will they last? If they do, how will their performance measure up in an era of growing environmental expectations? The good news is that the tools and technologies to evaluate and improve building resilience and performance exist today, offering a path to sustainable innovation.
With climate challenges intensifying, transformative action is no longer optional. Building owners, developers and engineers must adopt resource optimization and energy efficiency practices to mitigate environmental impacts. Hanson’s energy transition plan exemplifies this necessity, focusing on decarbonization, energy efficiency and climate resilience. It aligns seamlessly with forward-thinking guidelines, like the newly released Leadership in Energy and Environmental Design (LEED®) v5 O+M Strategic Decarbonization Plan (SDP) credit.
What is LEED v5 O+M’s Strategic Decarbonization Plan?
The LEED v5 O+M SDP, which is in public review, marks a pivotal evolution in the LEED certification process. It shifts the emphasis from incremental improvements in energy efficiency to comprehensive, actionable decarbonization strategies. Key elements include:
- net-zero carbon operations
- renewable energy integration at all levels
- electrification
- comprehensive greenhouse gas (GHG) accounting
- demand response and grid interactivity
- climate risk and resilience assessments
- continuous performance tracking and reporting
- procurement of sustainable materials
While the concepts of demand response and grid interactivity are not novel, this added focus for LEED is significant. LEED is in its 26th year, and over 195,000 buildings have achieved LEED certification. With increased momentum for electrification from buildings to vehicles and beyond, enhanced grid-interactive systems will help utility companies manage peak demand more efficiently, optimize grid capacity to reduce costly infrastructure upgrades, decrease reliance on fossil fuel-based peaker plants and better respond to fluctuations in energy supply through demand flexibility and energy storage.
Hanson’s energy transition plan
Hanson’s energy transition plan showcases a proactive approach to achieving sustainability and operational resilience. The key components of the strategy include:
- energy audits: assessing historical energy, water usage and scope 1 and 2 GHG emissions
- renewable energy adoption: promoting solar, wind and other renewable sources to reduce carbon footprints
- advanced analytics: using cutting-edge energy modeling tools to optimize building performance and enable grid interactivity
- phased facility improvements: collaborating closely with owners and stakeholders to implement upgrades systematically
These initiatives reflect Hanson’s commitment to balancing environmental stewardship with financial goals, delivering sustainability and economic value. Check out our earlier blog post for a deeper dive into our energy transition plans.
Why decarbonization makes business sense
Adopting LEED v5 O+M SDP-aligned strategies offers substantial benefits for building owners, particularly those managing multiple properties:
- lower operating costs: energy-efficient retrofits and renewable systems reduce utility expenses and insulate against market volatility
- portfolio-wide efficiencies: decarbonization strategies scaled across multiple properties standardize practices, create economies of scale and improve oversight
- regulatory compliance: energy-efficient buildings ensure compliance with emerging regulations and attract eco-conscious tenants
- financial incentives: LEED certification unlocks tax credits, grants and funding opportunities for green projects
- asset value retention: green-certified properties retain higher market value and command premium rents
- enhanced brand and reputation: demonstrating sustainability leadership boosts stakeholder relationships and strengthens credibility
Brookfield Properties exemplifies the transformative potential of adopting LEED-aligned strategies across a multiproperty portfolio. In Los Angeles, its six LEED-certified buildings, spanning over 9 million square feet, achieved a remarkable reduction of 4.9 million kilowatt hours in energy consumption. These efforts not only lowered operating costs but also enhanced portfolio-wide efficiencies and standardized sustainable practices. Brookfield's commitment to decarbonization earned the company the Portfolio of the Year award at the Los Angeles Better Buildings Challenge’s 2018 Innovation Awards, highlighting its leadership in sustainability.
Overcoming challenges
Decarbonization requires overcoming challenges like upfront costs and regulatory complexities. Hanson provides strategic solutions to address these barriers:
- funding partnerships: collaborating with local governments to secure grants and tax incentives
- education and advocacy: helping stakeholders understand the long-term return on investment of sustainable and resilience practices
- innovative tools: using advanced software for GHG tracking, energy modeling and real-time performance monitoring
These strategies simplify the shift to low-carbon building portfolios, reducing risks and amplifying positive outcomes.
The future of decarbonization for building owners
Sustainability is a critical factor in property management and investment decisions. Plans to reduce energy consumption and emissions offer a clear roadmap for incorporating smart grid systems, advanced technologies and renewable power into building management. By aligning with sustainable building rating systems like LEED v5 O+M, Hanson empowers building owners to future-proof their portfolios, optimize performance and contribute meaningfully to global climate goals. This approach not only enhances environmental stewardship but also drives long-term cost savings and operational resilience in an evolving energy landscape.
Learn more about Hanson’s energy transition plan by contacting Amanda Polematidis at apolematidis@hanson-inc.com.