Smart And Sustainable Buildings 2025 Key Drivers Greener Future

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by Yeo Choon Chong, CEO of integrated solutions, Surbana Jurong (SJ)In the coming years, Singapore’s built environment is expected to undergo significant transformations, bringing about changes that will have a profound impact on the facilities management (FM) sector. As the demand for sustainability and cost efficiency continues to rise, FM companies are facing immense pressure to adapt to these evolving demands, as well as advancements in technology. To thrive in the future, the FM sector will need to focus on three key drivers: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend towards adaptive reuse in construction.The upcoming Mandatory Energy Improvement regime, set to begin in 3Q2025, will require existing energy-intensive buildings to undergo energy audits and implement energy-efficient improvement measures. This mandate applies to a range of buildings, including commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 sq m. These buildings will be required to reduce their energy usage intensity by 10% from pre-energy audit levels – an achievable target with the right strategies in place.Asset owners are encouraged to take a medium to long-term view when considering capital expenditure-heavy investments in energy-efficient systems. The energy audits will provide valuable insights into energy consumption patterns, identify performance gaps, and guide asset owners on implementing a strategy to prolong the lifespan of assets, reduce operating costs in the long run, and contribute to a more sustainable built environment. Building owners can also take advantage of grants to help cover the costs of energy efficiency upgrades.With the recent opening of Singapore’s first smart campus, Temasek Polytechnic, the FM sector can look to its experience for valuable insights into the future of smart and sustainable facilities management. Through the digitisation of campus operations, including facility booking, automating campus repair and maintenance work orders, crowd management, and temperature control measures, Temasek Polytechnic has successfully established a suite of solutions to drive sustainability and cost efficiencies.At the heart of this smart campus is a common data environment that generates data from various systems, providing insights that aid decision-making for campus operations. This data is visualised, tracked, and monitored at a control centre on campus, allowing for a strategy that keeps the building operational systems healthy for as long as possible, maximising the return on investment in these assets and reducing operational carbon levels.AdvertisementAs the deadline for climate disclosure obligations approaches for all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million by 2027, we can expect to see an increase in investments in predictive technology. The rise in temperatures predicted for 2025 will exacerbate cooling demands in buildings, driving the need for more efficient energy systems. With air conditioning and mechanical ventilation (ACMV) systems already contributing to around 60% of total energy expenses in many buildings, optimising these systems is crucial in mitigating rising energy costs. This can be achieved through energy-efficient solutions such as energy recovery systems or thermal energy storage, as well as optimising chiller plant operations to match changing weather conditions.At a city and precinct level, we are seeing a growing need for a clearer understanding of climate change risks as extreme weather risks, such as flooding and urban heat, threaten the health and performance of critical infrastructure, including drainage and plumbing systems. By leveraging advances in web-based geospatial IT, facilities and asset managers can identify flood-prone areas or extremely heat-exposed spaces, allowing them to create a comprehensive operational plan that considers predicting extreme weather events to mitigate the risk of equipment failure and downtime. This also includes optimising chiller plant operations to match changing weather conditions.As construction costs continue to rise, we are seeing a growing trend towards adaptive reuse of buildings, with the rate of redevelopment in Singapore accelerating over the past five years. According to estimates by Surbana Jurong (SJ), mechanical and electrical costs have increased by approximately 30% compared to pre-Covid levels. This rise can be attributed to an increase in logistic shipping costs by 77%, labour costs by around 9%, and construction materials prices, such as copper (up 15%), as well as a shortage of mechanical and electrical (M&E) contractors. In response to these rising costs, we are seeing a shift towards smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs.Adaptive reuse offers a more sustainable option compared to demolition and reconstruction, as it reduces waste and carbon emissions. Smart buildings also mitigate further cost pressures by maximising the life cycle of capex-heavy equipment, including ACMVs, lifts, and air handling units. This is achieved through a data-driven long-term life cycle approach, prioritising energy savings to offset energy tariffs from the capital expenditure in investing in the equipment. Additionally, AI-powered smart monitoring systems can be deployed to monitor various components of a building’s M&E system using sensors. These monitoring systems provide granular detail on the performance of each component, aiding asset owners in making informed decisions about parts that need to be replaced within a specific period based on the type of defects and the regularity of breakdowns.By taking advantage of the advancements in technology and a data-driven approach, the FM sector can drive sustainability, reduce costs, and ensure long-term operational success. By embracing digitalisation, data analytics, and sustainable practices, we can work towards a more sustainable built environment that benefits all stakeholders, including building owners, developers, contractors, and the wider community.