Impact of HVAC systems on ESG goals

As organisations face growing pressure to address climate change, HVAC systems emerge as crucial components in achieving Environmental, Social, and Governance objectives. This article explores how efficient HVAC management supports sustainability and reduces carbon footprints in buildings.

Environment, Social & Governance (ESG) is the acronym currently in favour across any industry sector. That is because we are all witnessing daily the negative impact of climate change – increased frequencies of natural calamities such as Hurricanes and flooding, higher average summer temperatures and colder than usual winters apart from other effects. The growing organisations are being held accountable by their stakeholders – customers, clients, and employees to reduce their carbon footprint, minimise their environmental impact and take action on climate change. Here, ESG comes to the forefront, as it is a way for organisations to cover their entire operations of being Green. HVAC systems play a part in any sustainability efforts as the HVAC system is the largest energy consumer for most organisations, especially in the non-industrial sector. The building sector depends on cooling systems to make the workplaces habitable and comfortable for their employees and customers visiting the premises.

Overview of ESG

A few years back, most building owners and operators focused on energy to reduce costs and be more sustainable. However, with increasing scrutiny of an organisation’s operations by external and internal stakeholders, a more holistic approach has been developed around the ESG framework.

The environmental aspect addresses how energy consumption, waste management, water usage, and other operational factors directly impact the environment in which a building operates. The social dimension focuses on how an organisation or building interacts with the community it serves and operates in the focus of this area of ESG. It would include diversity initiatives, inclusivity, and barrier-free access to buildings. Governance plays a critical role by highlighting the importance of measurement. Hence, the ESG framework places a lot of emphasis on collating, analysing and utilising the data generated within a building to have an approach to operating the asset that will reduce the carbon footprint of buildings.

Developers and building owners set ESG goals that include reduction in energy usage, overall carbon footprint reduction, and waste-to-landfill reduction that helps them showcase their sustainability commitment.

HVAC Systems and ESG linkages

It is common knowledge that air conditioning costs are the major contributor to the building’s operating cost, as we see at home when our electricity bills soar during the summer months in North India. As per the International Energy Agency (IEA), operations of buildings consume 30 percent of the world’s energy and contribute to approx. Around 26 percent of global energy-related emissions*. With approx. 40 – 45 per cent of building energy is used in space cooling; the HVAC systems contribute significantly to the carbon footprint of the building. An inefficiently operating chiller can add to the operating cost of the asset and lead to higher emissions, which affects the ESG goals of the building. Some of the other ways that HVAC systems contribute to the ESG goals of organisations are-

Water usage—Water is a scarce resource, and improper operation of the water-cooled chillers will lead to higher water consumption. Cooling towers are also a source of water contamination if higher levels of chemicals are used to maintain the water quality due to poor water treatment. Frequent blowdowns will lead to higher water usage and contaminated water leaving the drainage systems.

AHU filters—Waste management is an aspect of a building’s ESG plan. Hence, disposal of used AHU filters is essential. Building operations teams should endeavour to keep the filters clean by adhering to the OEM-recommended cleaning frequency. This ensures that the filter life does not reduce.

Refrigerant management—While the Greenhouse Gas (GHG) potential of modern refrigerants like R 134a is lower than that of earlier refrigerants, they still have a significant impact on the environment if they escape from the system. Hence, the Chiller operations team needs to have a robust leak detection program and, where possible, implement leak detection systems that proactively identify leakages. Additionally, when repairs are undertaken to the refrigerant system, efforts should be made to capture as much of the refrigerant as possible.

Set Point Management—A 1-degree change in the chilled water outlet temperature can affect the energy consumed by the chiller by as much as 2 – 3 percent. This directly affects the cost of building operations and energy usage, which will affect the energy optimisation targets that a building sets as part of its ESG goals. Thus, the building O&M team should monitor the chilled water set point to ensure it remains as close to design values as possible.

Maintenance management – The HVAC system has multiple components, such as cooling towers, pumps, chillers, water treatment systems, AHUs, etc. All these systems and components require high maintenance and upkeep as the systems are all coupled. And anyone not operating optimally will affect the entire system. An effective Planned Preventive Maintenance (PPM) system that covers the setup will enable the HVAC system to operate at its design efficiency. This will ensure that the energy usage is optimal.

HAVC systems are critical to building operations and ensuring that the occupants can work or live in air-conditioned spaces that enhance the working environment. The HVAC system also contributes significantly to the operating costs of buildings and the carbon emissions associated with the building. With building occupiers increasingly seeking sustainable buildings that align with their ESG goals, developers have set aggressive ESG goals for their buildings. It ensures that the building’s impact on the environment is minimised. As a byproduct, operating costs get reduced due to better operations and lower energy costs. The O&M teams can support the ESG goals of the building owner by efficiently operating the HAVC systems with a high focus on proactive maintenance and reducing wastewater, refrigerants and energy. It will go a long way in helping mitigate the negative impacts of buildings on global energy emissions.   

* https://www.iea.org/energy-system/buildings