Is 2021 the Year We Move from Words to Action, and from Pilot Projects to Volume?

Tommy Hagenes, Energy Control and Proptech Bergen, and Roar Smelhus, 6CST, Home Workspace and Proptech Bergen

In an article in TU on 30.12.20, Guro Hauge, professional lead for buildings and materials at Zero, states that the construction industry is now a procurer of solutions, and challenges the government to impose climate requirements in both technical regulations, the national transport plan and as a building owner. At approximately the same time, on 28.12.20, technology and sustainability director at IKT-Norway, Mali Hole Skogen, published a good article in Tidens Tegn as a supplement to Finansavisen. She points out that it is good that we have been practising transformation in 2020, because in 2021 major societal changes are coming from the EU. The question, however, is whether Norway will plug in — so far, much suggests we will continue to postpone important political strategies and action plans. Most recently in the climate report released on 07.01.21, where the construction and property sector is barely mentioned, and where the feedback from environmental professionals is critical of most things other than the CO2 tax tripling towards 2030. Regardless of political action in Norway, we are affected by what is happening internationally and in the EU. In 2021, the EU's taxonomy came into force — a classification system with criteria that determine whether an activity can be considered sustainable or not. The taxonomy makes it easier for investors to distinguish between sustainable investments and those that are not. There is no doubt that this will create confidence in the market for green finance, as well as prevent greenwashing, which is a major problem in the industry today. We are also seeing more signs that several CFOs now understand what sustainability is about, and that the internal battle in companies to "make the project stack up" is becoming increasingly easier as the other two dimensions of sustainability receive their rightful place.

Not many days into 2021, DNB Bank ASA came out with sustainability guidelines for commercial real estate, with new conditions for financing. These came into effect on 01.01.21 with reporting from 2022 on 2021 figures. The sustainability guidelines have been developed to inform external and internal stakeholders about important risks DNB considers when providing financing to customers in the industry. The document is based on DNB ASA's principles for corporate social responsibility and reflects DNB's strategy within the sector. The guidelines describe key sustainability risks, expectations of customers and the approach to risk assessment. The bank's expectations of customers are ambitious, and finally we see what DNB Bank has been saying for many years actually being set as a premise and condition.

The communication now going out to building owners is very inspiring. Many of the conditions, however, are self-evident for our partners at Proptech Bergen — because we have been practising this for a long time — but we assume that 90% of buildings out there will struggle to meet the requirements, even though it does not take that much. We find many of the conditions interesting, but in this context we have particularly noted these:

·        Annual measurement and reporting of energy consumption

·        Continuous objective of improvement

·        Refurbishment rather than demolition

These points have been an important backdrop for what we have been working on at Proptech Bergen, and it is quite simple to get started.

The Proptech Bergen toolbox

To solve this we need an overview of data — which is why we started an initiative with Innovation Norway a year ago. The project we initiated aimed to develop a "dashboard" solution for all buildings at a price comparable to Spotify. Before we find the right tools, we need a toolbox, and through this we can always choose the best technology. The best technology is developed through testing in buildings in use, and that is exactly what we have been doing at Proptech Bergen from day one. Here we have developed a "living lab", and the best technologies we bring with us to our projects through an "as a service" delivery to the various building owners and their properties.

Open energy data

In 2019, the rollout of smart meters began — something we expected would become a unique tool for energy management, so that not only the largest and newest buildings could have such access. We know that 80% of the building stock will still be standing in 2050, and so we also need to bring existing buildings along. Smart meters today help electricity companies to easily share information about meter readings, making it easier to transfer customers between different companies. They also give you the opportunity to see how much energy you use per hour. This is currently delayed data — meaning you see your energy consumption today, tomorrow. So even though smart meters only collect data hourly in the cloud, they have given us "a straw" for the real value. All meters have been given a HAN port. HAN stands for "Home Area Network" and can easily provide detailed data about everything happening at the building. What is particularly interesting here is electricity consumption in real time — the power being drawn. By using this data we can practise effective energy management, and it is a good start for all buildings.

The insurance industry is coming

We are now curious about when the insurance industry will follow. We are receiving many enquiries from this industry and find that they are sitting on the edge of their seats when it comes to technology and sustainability. Sensors that detect water leaks we have discussed before, and we find it strange that sensors are not required in all existing buildings in the same way as in new builds. Just think of all the kitchen units and water dispensers out there — the chance of something going wrong with one of them is significant. The consequence in an empty building is easy to imagine, and what could have happened through a new COVID lockdown if buildings stood unattended for 14 days? The insurance industry and the property valuation association also have good figures — 60% of all damage cases are water-related, and this costs us 3.6 billion Norwegian kroner annually. A lot of sensors can be bought for that sum.

Parliamentary elections in 2021

For those of us who have been working on these topics for a few years, the building owners' conditions coming our way are a long-awaited positive development. There are probably many in the industry looking with expectation at what is soon to come in terms of real requirements from the political arena. We have a significant way to go when it comes to energy efficiency in existing buildings, and not least when it comes to the circular economy. According to Circular Norway, Norway is 2.4% circular — and there are not many years until 2030 when we need to see major progress. There is too much talk, double standards and greenwashing today; perhaps we need a change of government in autumn 2021 to get the momentum we need from our politicians.

In 2021 you will no longer be able to greenwash companies — action is now required!

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