By Katrina Christopoulos, Head of ESG at Cloud
Buildings contribute significantly to carbon emissions from their construction and ongoing operations.
As pressure mounts to reduce the carbon footprint of real estate assets, technology is emerging as a vital solution, with artificial intelligence (AI) playing a transformative role. AI is proving instrumental in optimising energy use, improving decision-making, streamlining retrofits, and enabling predictive maintenance, each crucial for achieving decarbonisation goals.
At September’s Sustainability Live in London, it struck me that most companies now have carbon plans and many good sustainability strategies. Reporting is becoming more standardised and transparent. What was lacking, in my opinion, was the how. There were very few tangible solutions, although there were many good ideas.
For me, the devil is in the detail. The focus should be on solutions that exist today rather than those dependent on future technologies. My expertise lies within the built environment, particularly in optimising existing buildings to reduce energy consumption. Decarbonising our current building stock is a complex challenge, it’s not just about building better but about understanding how each building operates, the assets within it, and how they are managed to reduce energy use and carbon emissions.
The good news is that we have many solutions. I have seen firsthand how Cloud’s Mindsett technology provides granular insights down to the harmonic quality of individual assets. This enables an understanding of not only energy consumption but also if an asset is likely to fail soon or if it needs maintenance.
When planned maintenance becomes demand-led, it negates the need for unnecessary site visits, ensures assets are well looked after to extend their life and protects against downtime. So, carbon is saved not just directly through energy reductions but also through reduced transport by engineers (scope 3) and by extending usable lifetimes of equipment.
It should be a priority to feed AI engines with good-quality data to enable machine power, prioritise action, and get into the details, decarbonising our assets faster. Beyond individual buildings, AI tools have the potential to inform strategic decision-making across entire real estate portfolios. Building owners and property managers can leverage AI to analyse a wealth of data, including leasing information, asset emissions, operational costs, and market conditions. By synthesising this data, AI can make informed recommendations about which buildings to prioritise for decarbonisation efforts.
For example, AI can suggest which properties are ripe for retrofitting, which might be more efficient to sell, and where acquiring new assets could bolster overall decarbonisation strategies. This data-driven approach ensures that decarbonisation efforts are not limited to individual properties but are extended across entire portfolios.
Retrofitting existing buildings is a major step toward reducing emissions, and AI plays a crucial role in improving the planning and execution of these projects. AI models can analyse a building’s current state and identify the optimal combination of retrofit solutions, such as upgrading insulation, installing energy-efficient windows, or modernising heating, ventilation and air conditioning (HVAC) systems.
Integrating AI with existing building management systems can also be a challenge, particularly in older buildings where infrastructure may not be compatible with modern technology. Furthermore, privacy and security concerns surrounding data collection and usage need to be managed carefully to ensure that AI tools are implemented responsibly.
Finally, training building managers and occupants to use AI-powered systems effectively is essential. AI tools are most beneficial when users understand how to interpret and act on the recommendations they provide.
AI is already demonstrating its value in helping tackle the complex challenge of decarbonisation. AI technology can significantly reduce a building’s carbon footprint while delivering financial returns on sustainability investments. As these tools become more advanced and accessible, they will continue to play a critical role in creating a more sustainable built environment.