FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
Industry players in the built environment have the potential to reduce emissions by more than 50 per cent by 2030 with currently available technologies, according to the latest analysis from McKinsey & Company (McKinsey) in collaboration with the Net Zero Built Environment Council.
Building value by decarbonizing the built environment identifies several business opportunities across the value chain that could lead to cost-effective decarbonization for the sector.
Looking at over 1,000 potential decarbonization levers for the built environment, McKinsey identifies the top 30 that can be used to decarbonize buildings – many of which are either already cost effective relative to conventional practices or are expected to be at or close to cost parity by 2030 if industrialised.
To capture economic benefits, industry players will likely need to act decisively to increase production of technologies and materials, build service companies, unlock supply chains, and develop the necessary operational skills across the value chain to implement solutions at scale. For example, approximately 60 per cent of built environment operational emissions come from space cooling, space heating, and water heating. Heat pumps could abate up to 60% of heating and cooling emissions for most building types. However, the heat pump supply chain currently is experiencing manufacturing and supply chain bottlenecks that providers would have to solve.
Erik Sjödin, Partner at McKinsey & Company commented: “The report highlights potential pathways to decarbonize the built environment and presents many proven and available technologies and solutions that companies in the ecosystem can implement today, and often cost-effectively. We have aimed to focus on some of the largest opportunities that industry players could realize by scaling production, building future operating models, and developing skills and expertise across the value-chain.”
Brodie Boland, Partner at McKinsey & Company adds: “The built environment is a crucial sector for decarbonization, and companies in this sector have a unique opportunity to capture value and build businesses, while enabling the transition to a low-carbon world.”
Are you confident that your contractors and suppliers meet ethical labour standards and human rights obligations?
For many FM services, managing multiple third parties in the supply chain can be a complex challenge. And, in a sector that relies heavily on migrant workers and 65 per cent of FM services facing difficulties in sourcing workers (Q4 2022 RICS survey), exposure to exploitation and modern slavery is a very real risk. With the UK one of the biggest destinations in Europe for trafficking of workers, you need full visibility of the people you work with, so you can minimise your risks and identify which part of your supply chain is most vulnerable.
FMJ, in partnership with Alcumus, is pleased to bring together a panel of experts to discuss how to create an ethical supply chain in FM.
Taking place at 11am on Wednesday 21st of June, the webinar will discuss:
- The regulations to be aware of that are aimed at preventing human right abuses.
- How to gain greater visibility of modern slavery compliance in the supply chain by having a robust verification process in place.
- Steps to creating a compliant, ethical supply chain.
To register for the webinar click here.
