From Technology to Strategy – The Buildings Driving the Energy Transition

Reducing energy use without compromising comfort or profitability is one of the property sector’s greatest challenges, but also one of its greatest opportunities. Peter Lindström, Head of Energy Strategy at Vasakronan, believes the energy issue needs to be elevated from a technical matter to a strategic one, and that the right priorities can both create value and reduce risk.

Energy use in the property sector accounts for a significant share of Sweden’s climate impact. Reducing it requires more than new technology, it requires a holistic and long term approach. Vasakronan has worked with this issue for many years and has made substantial progress. In less than ten years, the company halved its energy use and is now aiming to halve it again.

Peter Lindström, who is responsible for the company’s energy strategy, believes the success is built on a learning organisation and continuously evolving ways of working.

“Many talk about technology, about replacing units and fine tuning systems. But it is just as important to have a clear strategy. To build an organisation and a culture that sees the whole picture, values competence and works towards shared goals,” he says.

From technology to strategy

Energy efficiency today is about more than more efficient systems. The major challenge is to create structures that hold over time, where operations, management and business work towards the same objectives.

“At its core, it is quite simple. We need to make energy part of the business, not something that sits on the side. That is when you start making completely different decisions,” says Peter Lindström.

He believes many still see energy as a cost item, when in fact it is a strategic resource. Managed correctly, it can contribute to profitability, resilience and reduced risk.

“The energy issue is business critical. When you save energy, you save both the environment and money, but you also strengthen revenue. Properties with low energy use become more attractive, both to tenants and investors.”

The development is also driven by new regulations and financial incentives. The EU Taxonomy has made the link between sustainability and business more concrete. To be classified as green, a property must be among the most energy efficient on the market, affecting everything from financing to brand value.

“There is a clear shift. A few years ago, we talked about sustainability as something done purely for environmental reasons. Now it is clearly a business issue. Buildings that do not meet the requirements lose value,” says Peter Lindström.

A holistic approach that delivers results

To succeed, a holistic perspective is required where technology, data and human competence work together. For many, the first wave of efficiency measures, the so called low hanging fruit, has already been completed. The next step is about optimising systems and establishing effective routines.

“The big eye opener for me was the potential in getting all technical systems to work together instead of against each other. It sounds simple, but it requires both competence and follow up,” says Lindström.

However, real energy efficiency is not achieved through isolated projects, but through continuous work. Only when knowledge, responsibility and follow up become part of daily operations does change truly take effect.

“It is easy to think it is about buying technology, but it is about how you work with it over time. When you understand the whole, the results become better and more stable.”

The impact is visible not only in energy statistics, but also in building performance. A clear example is some of Vasakronan’s older properties that today operate below 50 kWh per square metre, outperforming new build requirements, while tenants report higher satisfaction in surveys and fewer climate related service reports.

“The most energy efficient buildings are often those with the best indoor climate and fewer service issues. This shows that energy efficiency is not about saving at the expense of comfort, but about using energy where it actually creates value,” says Peter Lindström.

People before meters

At its core, energy efficiency is about people. Technology enables change, but people drive it. Competence and engagement are at least as important as new systems.

“Energy optimisation is complex. It requires operations technicians, engineers and analysts who see the whole picture. And above all, a culture where you follow up, learn and dare to adjust,” says Lindström.

Here, leadership plays a decisive role in ensuring the transition succeeds.

“Those who succeed have often made the issue part of their core business. Management follows it up in the same way as financial performance or customer satisfaction. Change does not happen by itself, it must be owned and driven at the highest level.”

A shared responsibility

Despite significant progress, the sector still has much to gain from collaboration.

“We property owners are good at sharing experiences with each other, and we must also maintain close dialogue with suppliers and contractors, those who actually develop and build the systems,” says Lindström.

He believes real development happens only when the entire value chain works towards the same goals.

“There is tremendous competence out there, but we need to start using it together. It is not enough to exchange business cards, we need to solve the problems jointly.”

For the transition to truly succeed, the entire industry must be involved. It helps when there are contexts that bring together the shared knowledge and experience that already exist.

“We need arenas and meeting places where property owners, suppliers, academia and the public sector meet on equal terms. That is why I find the newly launched Clima Energy Nordic particularly interesting. With a clear focus on energy efficient buildings and the business value of energy, I believe it can attract many different stakeholders within the industry,” concludes Peter Lindström.

Peter’s three pieces of advice for property companies

1. Make energy a strategic issue
   1. Elevate energy work to executive level and follow it up as part of the core business. Only when the issue carries business weight does it begin to drive real change.
2. Invest in competence
   1. Energy efficiency is not only about technology, but about people. Build organisations with operations technicians, engineers and analysts who see the whole and understand how systems interact.
3. Collaborate across the entire value chain
   1. Do not only talk to other property owners. Involve suppliers, contractors and academia. The biggest steps are taken when all parts of the chain solve problems together.

Clima Energy Nordic is the Nordic region’s new meeting place for sustainable and energy efficient buildings and facilities. With a focus on efficient energy use in heating, ventilation and cooling for indoor climate, property owners, investors, installers, suppliers, consultants, researchers and decision makers come together to drive the development towards sustainable buildings, facilities and profitable investments.

About Clima Energy Nordic