Why Energy Solutions Are Critical for Future-Proofing Your Business in 2025

As the world progresses towards ambitious climate goals, businesses must adapt to meet demands such as stricter emissions regulations, evolving consumer expectations for sustainability, and increased financial scrutiny tied to ESG compliance. The European Union's roadmap to becoming the first climate-neutral continent by 2050 is a monumental step forward. However, this journey comes with stringent regulations that businesses must address now. The first wave of these measures is already here, demanding immediate action.

Green Deals and Its Impact on Real Estate

Various Climate Laws, more commonly known as the *Green Deals*, emphasize property and building efficiency significantly. According to the EU, buildings account for 40% of the energy consumed and 36% of energy-related greenhouse gas emissions in the region. Alarmingly, approximately 75% of buildings in the EU are not energy efficient, contributing significantly to greenhouse gas emissions and missed opportunities for energy cost savings. With 95% of these buildings expected to remain standing in 2050, meeting energy efficiency targets is non-negotiable.

Regulatory Pressures for Office Buildings

In various countries, like the Netherlands, these regulations have tangible consequences. Since January 2023, all office buildings must possess at least an energy label C. This means a primary fossil energy consumption capped at 225 kWh per m² per year. Non-compliant buildings risk being declared unfit for office use. Yet, many properties may already meet these standards but lack the data to prove it. For instance:

• Only 50% of the 65,000 office buildings in the Netherlands comply with the mandate.
• 41% of offices remain unregistered, meaning 14,000 offices may qualify for Energy Label C but lack proof.

Smart metering solutions provide an immediate fix, offering accurate energy consumption data to support compliance. For example, advanced systems like the Rhino platform combine real-time energy monitoring with automated reporting, ensuring property owners have the data to meet regulatory requirements seamlessly. For property owners, this not only ensures continued operation but also identifies areas for improvement.

Corporate Push for Sustainability and ESG Reporting

Regulatory pressures are not the only driver of change. Environmental, social, and governance (ESG) criteria have become key metrics for corporate performance. Companies falling short in these areas face reputational and financial penalties. Industry leaders like Apple are pushing their supply chains toward decarbonization, requiring accurate and transparent data to track progress. Suppliers unable to meet these standards risk exclusion.

The Role of Data and Lifecycle Assessments

Lifecycle assessments (LCA) are becoming a standard tool for measuring a company’s environmental footprint, offering a comprehensive view of a product’s environmental impact from raw material extraction to disposal, unlike simpler carbon calculators which may focus only on operational emissions. This holistic approach avoids burden-shifting and enables decision-makers to compare products and processes for sustainability. Companies like Unilever, Ikea, and Nestlé have long championed LCA, placing pressure on their networks to follow suit. With regulations and consumer expectations intensifying, adopting LCA is becoming essential for businesses to thrive.

Consumers and Investors Demand Accountability

Consumers increasingly expect transparency and sustainability from the companies they support. According to Forbes, over 75% of consumers in 2022 stated they would discontinue relationships with organizations that fail to meet ethical or environmental standards. This sentiment drives brands to embrace hard data and actionable ESG strategies.

Financial institutions are also stepping up. ABN AMRO, for example, has integrated ESG risk scores into its client portfolios, allowing investors to assess the impact of their investments. Similarly, fintech innovators like Payhawk emphasize ESG as a cornerstone for future business trends.

Transparency as a Solution

The risks of non-compliance are multifaceted: operational shutdowns, loss of partnerships, and declining consumer trust. These risks, however, can be mitigated through transparency. Businesses must:

• Track annual energy efficiency performance to identify improvement areas.
• Use energy data to create comprehensive ESG reports.
• Showcase compliance with EU regulations and commitment to sustainability goals.

Start Your ESG Journey

Transparency begins with accurate data. Rhino’s solutions make it easy to monitor energy use, comply with regulations, and support ESG initiatives. Features like real-time energy tracking, customizable dashboards, and ESG dashboard integrations, empower property managers and owners to identify inefficiencies and optimize performance seamlessly.

With Rhino, you can:

• Automate energy monitoring and reporting.
• Engage tenants and property managers with actionable insights.
• Provide comprehensive compliance data to stakeholders.
  
  

Discover how Rhino can help you future-proof your business while championing sustainability. Contact our sales team today to start your ESG journey.