The Growing Pressure of Energy Reporting Regulations: Are You Prepared?
Energy reporting regulations are tightening across the globe as governments push for greater sustainability in the built environment. From the EU’s Corporate Sustainability Reporting Directive (CSRD) to the UK’s Sustainability Disclosure Requirements (UK SDS), businesses are now facing mounting pressures to track and report their energy consumption and carbon emissions. But many portfolio managers, particularly those without a Building Management System (BMS), are struggling to keep up with these demands.
The Push for Transparency
One of the key drivers behind this regulatory push is transparency. Companies are increasingly required to disclose their energy performance and carbon footprint as part of their Environmental, Social, and Governance (ESG) reporting obligations. The CSRD, for example, mandates that large companies report detailed information about how they manage social and environmental challenges, with a particular focus on reducing carbon emissions. These regulations not only affect how companies are viewed by stakeholders but also carry legal consequences for non-compliance.
What Happens If You’re Not Prepared?
Companies that fail to comply with energy reporting regulations could face hefty fines and reputational damage. But more importantly, they risk falling behind in a market that’s increasingly driven by sustainability. With 89% of buildings lacking a BMS, many organisations don’t have access to the real-time data they need to make informed decisions about their energy usage. This lack of visibility can lead to inefficiencies, missed opportunities for cost savings, and non-compliance with reporting requirements.
For example, commercial real estate owners are under increasing pressure to improve the EPC (Energy Performance Certificate) ratings of their buildings. Without a system to track and optimise energy use, these buildings risk being classified as stranded assets, becoming unlettable or devalued due to poor energy performance.
How to Get Ahead of the Curve
Building and portfolio managers must take a proactive approach to energy management and reporting. Those without a BMS can still comply by adopting retrofit solutions that provide real-time energy monitoring and insights without the cost and complexity of traditional systems. These solutions enable operators to gain visibility into energy consumption, optimise their building systems, and ensure compliance with upcoming regulations.
The future is clear: regulatory pressures are here to stay, and buildings that don’t address their energy performance will face increasing risks. Getting ahead of the curve now will not only help companies avoid fines and penalties but also position them for long-term sustainability and success.
Read more about the fines for failing to report CSRD requirements here.
Read about EPC ratings and the risks of stranded assets here.
