Energy savings of up to 15%

Advantages of PCM ceiling panels stem from the fact that they support thermal comfort with no mechanics, energy expenditure, or fossils fuels to burn! A valuable, sustainable solution for a world prioritizing decarbonization, ceiling panels with PCM technology can reduce energy costs and consumption by as much as 15%.* By enabling energy savings, these ceilings offer advantages including:

• Reduced reliance on fossil-fuel powered HVAC systems
• Less wear on HVAC systems — critical to facilities with aging systems and strict budgets
• Improved thermal comfort — especially well-suited for changing climates or environments with daily hot-cold fluctuations
• Ability to enhance indoor environmental quality with features like acoustical sound blocking and absorption
• Easy installation and little-to-no maintenance

Energy-saving ceiling products also fit into the thermal comfort portion of the WELL Building Standard and can contribute to energy and atmosphere credits for LEED.

Up to 50% in tax credits

While the above advantages can work to help a facility realize ongoing savings related to lower energy consumption and less reliance on mechanical heating and cooling — a project owner can get a “head start” on cost benefits because PCM ceiling panels qualify for certain tax credits. Projects utilizing energy-saving ceiling panels may qualify for Investment Tax Credit (ITC) 48E, which was introduced under the Inflation Reduction Act of 2022 and offers tax incentives for investments in clean energy technologies. Because of their thermal energy storage properties, most projects using PCM ceiling panels may qualify:

• Up to 40% federal tax credit
• Additional 10% tax credit if the project is deployed in an “Energy Community.” (i.e., a Brownfields site or fossil-fuel-dependent community)

When investing in energy-saving ceilings for a project, consider a solution that helps you maximize tax savings opportunities. For example, when installing an Armstrong Templok Energy Saving Ceiling, the ceiling panels, and associated grid, trim, and labor all qualify for tax credits under ITC 48E. Moreover, these panels are made in the U.S.A. of domestic and global content, meeting a requirement for additional tax savings.**

Qualifying energy saving ceiling projects include those of taxpayers and non-taxpaying entities and span multiple sectors, including:

• Public — such as government entities
• Private — corporations, healthcare facilities and others
• Education — K-12 and higher education
• 501 (c)(3) charitable organizations

The list of ideal projects is extensive and includes K-12 schools, public and private universities, dorms, museums, hospitals, nonprofit offices/facilities, military bases, courthouses, faith-based buildings, convention centers, and arenas — to name a few. In addition to getting information from the ceiling manufacturer, it’s important to consult your tax advisor to confirm qualification of your project.

More affordable, more sustainable

Thanks to tax credits, the use of energy-saving ceilings could make your next construction or renovation project more affordable. And, with PCM technology helping reduce energy costs, the impact on your bottom line won’t stop there. You can learn more about energy saving ceilings and related tax credits by visiting Armstrong Ceilings.

Notes:

• *Cooling energy savings according to research estimates measured in lab tests. Results may vary.
• ** This article lists various federal tax credits and deductions that your project may qualify for when purchasing Armstrong TEMPLOK Energy Saving Ceilings. Please consult your own tax attorney or advisor.
• LEED is a registered trademark of the U.S. Green Building Council; WELL Building Standard is a trademark of the Well Building Institute.

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Overview

In a small community where resources are finite, Union City, Indiana, faced the challenge of upgrading critical infrastructure while balancing financial, sustainability, and community priorities. Through a strategic partnership with ABM, the city implemented a comprehensive energy, lighting, HVAC, and infrastructure upgrade that exceeded financial, operational, and community goals — maximizing outcomes while minimizing waste.

“ABM played a critical role in helping us identify what we could be doing better — how we could be more efficient and sound from an infrastructure perspective,” said Union City, Indiana, Mayor Chad Spence. “Their expertise helped us hit the mark on sustainability, financial responsibility, and community impact.”

Challenges

Union City’s historic infrastructure, including a museum housed in a former railroad hotel, required urgent repairs. Leaky roofs and outdated systems posed risks to both the buildings and their irreplaceable contents. Additionally, high energy consumption — particularly at wastewater treatment facilities — placed a significant financial burden on the city’s budget, limiting opportunities for community growth and development.

Key challenges included:

• Aging infrastructure in need of modernization
• High energy costs straining the city’s budget
• Preserving historic structures while improving efficiency
• Overcoming permitting and regulatory hurdles for renewable energy solutions

An engineering and infrastructure solution

ABM’s industry-leading Engineering & Infrastructure Solutions team, led by Chris Mastrianni, Joe Boetsch, Ann Smith (LEED AP), and Erick Dustin, worked closely with Union City leadership to design a future-focused plan.

Key project components:

• Energy efficiency and sustainability: Integration of solar arrays to reduce dependency on the grid and lower operational costs
• Infrastructure upgrades: Modernization of lighting, HVAC systems, and wastewater treatment facilities to improve efficiency and performance
• Financial innovation: A strategic financial model that leveraged energy savings to fund additional infrastructure improvements
• Community impact: Reinvesting cost savings into critical areas such as parks, streets, and sidewalks

Results and impact

By thinking outside the box and leveraging innovative solutions, ABM helped Union City achieve:

• Significant energy cost savings – Enabling reallocation of funds to community growth initiatives
• Improved infrastructure efficiency – Enhancing operational performance across city facilities
• Preserved historic structures – Protecting the city’s heritage while modernizing key assets
• Sustainability and resiliency – Positioning the city for a more energy-independent future

Union City powers a sustainable future

Union City’s successful partnership with ABM showcases how smart infrastructure investment can drive long-term sustainability, financial efficiency, and community growth. By prioritizing innovation, fiscal responsibility, and sustainability, Union City has set a precedent for how small communities can thrive through strategic energy and infrastructure improvements.

The “ABM Partners with Union City to Upgrade Municipal Infrastructure” video and transcript are available at ABM.

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As facilities age, so do the mechanical systems that keep them running efficiently. One of the most critical of all systems is, of course, HVAC (Heating, Ventilation, and Air Conditioning). Not only does the HVAC system play an essential role in maintaining a comfortable and safe environment for occupants, it also protects the integrity of high-value inventory, and in the case of healthcare facilities, ensures safe operating conditions — an absolute matter of life and death. However, more than most elements in the built environment, HVAC systems are often encumbered by deferred maintenance which can lead to higher operating costs, reduced energy efficiency and even catastrophic system failures.

In this article, we’ll explore the risks associated with deferring HVAC maintenance, the challenges of securing budget approval for upgrades, and how building owners and facility managers (FMs) can leverage incentive programs to defray the cost of HVAC system upgrades.

The risks of deferred HVAC maintenance

One of the most significant challenges FMs encounter is deferred maintenance on the HVAC system, the consequences of which can vary widely depending on the type of building and its usage profile.

For critical care facilities such as hospitals, the risk of deferring HVAC maintenance can impair the institutional mission. For example, a hospital’s HVAC system is responsible for cooling sensitive equipment such as MRI machines, as well as maintaining the climate in data centers that store patient information. In these settings, any HVAC system failure or deferred maintenance can have catastrophic consequences.

On the other hand, office buildings typically have a far lower risk profile in the event of an HVAC failure as the building’s occupancy is usually limited to specific hours and temporary measures such as portable cooling or heating units can mitigate the immediate effects of a system outage. However, even in office buildings, deferring maintenance can still be quite costly in the long run—putting such strain on the system can lead to high emergency repairs.  Whether the building is a hospital, office, or manufacturing facility, HVAC systems require regular attention to prevent minor issues from escalating to emergencies. 

Challenges of securing budget approval for upgrades

One of the main reasons the HVAC system goes unaddressed until a failure is the difficulty FMs have in securing budget approvals for proper maintenance. The “if it ain’t broke, don’t fix it” mentality often prevails amongst the C-Suite, making it difficult for FMs to justify capital expenditures for servicing equipment that may still be functioning, though it is aging.

HVAC systems are designed to last for 15 to 20 years. During this time, FMs likely do their best to keep these systems running. But as an HVAC system ages, it can become inefficient and prone to breakdowns. However, when everything appears to be “working fine,” it can be quite challenging to convince landlords or upper management to approve the necessary budget for ongoing maintenance and periodic upgrades. Such a mindset often means that HVAC systems are only replaced after a major failure occurs, which leads to higher emergency repair costs, operational disruptions, lost productivity and sometimes lost inventory or research and development data.

Incentive programs are a key to unlocking upgrades funding

The good news is that there are a variety of incentive programs available to building owners and facility managers that can significantly offset the cost of HVAC system upgrades. These incentives include utility rebates, government programs, and federal funding opportunities, listed below. Navigating them can be arduous, however, and the application process requires careful planning and timing to maximize benefits.

1. Utility incentives: Many utility companies offer rebates for upgrading to energy-efficient HVAC systems. These rebates are often tied to specific energy-saving targets, such as reducing a building’s total energy consumption or improving system efficiency, mitigating the negative impact on the environment. These programs may be easier to access for smaller-scale projects.
2. Government programs: State government programs offer additional financial support for energy efficiency improvements, yet they also can be complicated to access and may require additional paperwork and property certifications. Still, such programs are an excellent resource for building owners seeking to lower energy consumption.
3. Federal programs: At the federal level, incentives such as tax credits and grants are available to encourage the adoption of energy-efficient technologies in commercial buildings. These programs are typically larger in scope and may cover a portion of the overall cost of a major HVAC system upgrade.

Application process considerations

The application process for these incentives is often complex. For the average commercial project, the approval timeline can range from three to six months. Therefore, if an HVAC system has failed or is near failure, FMs must weigh the time required to apply for these incentives against the urgency of the repair.

One of the best ways to navigate the incentive and rebate maze is to work with an independent service provider who understands which incentive programs are applicable to specific building types and system needs. A qualified service provider can streamline the selection and application process while also maximizing the financial benefit, something that is sure to please the C-Suite and property owners.

How much can incentives cover?

One of the principal factors influencing the decision to upgrade an HVAC system is cost. HVAC systems are inherently expensive, and the upfront capital required for a system replacement can be daunting. Incentive programs help mitigate this cost, but the exact amount awarded can vary widely depending on the program and the building type.

Incentive programs fall into the following categories:

• Prescriptive programs: These programs offer fixed rebates for specific types of HVAC upgrades, such as replacing a 15-ton unit with a higher-efficiency model. The rebate amount is usually fixed per ton of capacity, making it straightforward to calculate the incentive value.
• Custom programs: For larger or more complex projects, custom programs offer incentives based on energy savings or system performance improvements. These programs require a more detailed application process and often include energy audits or engineering analysis.
• Small Business direct install programs: For smaller businesses, many utilities offer direct install programs that cover a significant portion of the installation cost for energy-efficient HVAC systems. These programs are designed to be simple and accessible, allowing small businesses to improve energy efficiency without upfront costs.

While each program has unique metrics and value, building owners can expect to cover a portion of their HVAC system upgrade costs through these incentives. Additionally, low-interest financing options may be available to further ease the financial burden.

A strategic approach to HVAC upgrades

When approaching HVAC upgrades, it’s essential to consider not only the current state of the system but also the long-term maintenance and operational costs.  Building owners and FMs are best advised to take a strategic approach by focusing on whether incremental improvements are possible before undertaking a full system replacement.

Component life expectancy

HVAC systems consist of multiple components, each with a different life expectancy. For example, the motor that drives the fan may last much longer than the compressor that cools the refrigerant. Rather than waiting until the entire system fails, FMs can elect to make incremental improvements, such as adding a Variable Frequency Drive (VFD) to an aging motor to extend its lifespan by three to five years. These small upgrades can improve system efficiency while delaying the need for a complete system replacement.

Long-term planning and immediate needs

While short-term fixes can help keep an aging HVAC system running, building owners must also plan for long-term upgrades. Working with service providers that have the expertise to understand the intricacies of a building’s energy and mechanical systems can ensure that any investment in improvements optimally aligns with both immediate and future needs.

Becoming educated about all possible means to extend an HVAC system’s life expectancy and incentive programs that make repairs financially manageable while improving sustainability is critical for FMs who want to ensure smooth and timely budget approvals from their C-Suite team. Further, FMs may also assist management with efforts to persuade commercial landlords about how critical a high-functioning HVAC system is to their business productivity and profitability, a key consideration in real estate leasing decisions. 

While HVAC system upgrades may seem costly and challenging to implement, a combination of strategic planning, leveraging incentives, and making incremental improvements can help improve energy efficiency and sustainability, reduce costs and long-term energy expenses as well as avoid catastrophic system failures that ultimately cost far more than regular maintenance.

Ronald F. Raymond is the founder of RSE Energy Group, a fast-growing Northeast energy solutions provider serving an array of commercial clients, including real estate developers and property management firms, and the healthcare, hospitality, scientific, manufacturing, office, and retail sectors. He holds a Bachelor of Science degree in Mechanical Engineering from Tuskegee University and has completed NJIT’s Construction/Engineering Management Program and NYU’s SCPS Certification in Building HVAC Design. With over 20 years of experience, Raymond is a licensed professional contractor with expertise in mechanical and HVAC engineering, MEP project management, and energy system installation (ESI). RSE offers a comprehensive approach to evaluating MEP, air quality, energy infrastructure construction, engineering, and project management needs.

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Below are the Top 4 Education Real Estate Trends to Watch that JLL identified for 2025:

• Higher ed institutions will increasingly look to strategic solutions to navigate financial challenges and market pressures: 12 higher education P3s closed in 2023, up from 5 in 2022 and 5 in 2021. There are currently 19 higher education P3s in progress YTD in 2024, up from 12 in 2023.
• The holistic campus experience will be a key differentiator for attracting and retaining students and faculty and staff: It’s essential for schools to develop affordable and highly amenitized student and workforce housing, innovative learning spaces, modern athletic complexes and technologically advanced research laboratories to drive growth and attract both students and faculty/staff.
• Colleges and universities will shift from planning to action as they prioritize campus sustainability and resilience: 80% of students report considering sustainability as an important factor in their college decision.
• Data-driven decision making will improve operational efficiencies in higher education campus management: 69% of educational organizations surveyed believe that the CRE function has the potential to deliver the most value over the next five years by supporting organizational efficiencies.

Education Trends to Watch: 2025 Global Real Estate Outlook (PDF) is available for download from JLL.

JLL researchers have also identified trends to watch for the following industries, in addition to the larger Occupier Trends to Watch piece:

• Aerospace and Defense
• Financial Services
• Healthcare
• Industrials
• Insurance
• Life Sciences
• Technology

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State-based armed conflict is identified as the most pressing immediate global risk for 2025, with nearly one-quarter of respondents ranking it as the most severe concern for the year ahead.

Misinformation and disinformation remain top short-term risks for the second consecutive year, underlining their persistent threat to societal cohesion and governance by eroding trust and exacerbating divisions within and between nations. Other leading short-term risks include extreme weather events, societal polarization, cyber-espionage and warfare.

Environmental risks dominate the longer-term outlook, with extreme weather events, biodiversity loss and ecosystem collapse, critical change to Earth systems and natural resources shortages leading the 10-year risk rankings. The fifth environmental risk in the top 10 is pollution, which is also perceived as a leading risk in the short term. Its sixth-place ranking in the short term reflects a growing recognition of the serious health and ecosystem impacts of a wide range of pollutants across air, water and land. Overall, extreme weather events were identified prominently as immediate, short-term and long-term risks.

The long-term landscape is also clouded by technological risks related to misinformation, disinformation and adverse outcomes of artificial intelligence (AI) technologies.

Mirek Dušek, managing director, World Economic Forum, stated:

Rising geopolitical tensions and a fracturing of trust are driving the global risk landscape. In this complex and dynamic context, leaders have a choice: to find ways to foster collaboration and resilience, or face compounding vulnerabilities.

Fractured systems, fragile futures

The report, which draws on the views of over 900 global risks experts, policy-makers and industry leaders surveyed in September and October 2024, paints a stark picture of the decade ahead. Respondents are far less optimistic about the outlook for the world over the longer term than the short term. Nearly two-thirds of respondents anticipate a turbulent or stormy global landscape by 2035, driven in particular by intensifying environmental, technological and societal challenges.

Over half of respondents expect some instability within two years, reflecting the widespread fracturing of international cooperation. Long-term projections signal even greater challenges as mechanisms for collaboration are expected to face mounting pressure. Societal risks such as inequality and societal polarization feature prominently in both short- and long-term risk rankings. Rising concerns about illicit economic activity, mounting debt burdens and the concentration of strategic resources highlight vulnerabilities that could destabilize the global economy in the coming years. All these issues risk exacerbating domestic instability and eroding trust in governance, further complicating efforts to address global challenges.

All 33 risks in the ranking increase in severity score over the longer term, reflecting respondents’ concerns about the heightened frequency or intensity of these risks as the next decade unfolds.

Mark Elsner, head of the Global Risks Initiative, World Economic Forum, remarked:

From conflicts to climate change, we are facing interconnected crises that demand coordinated, collective action. Renewed efforts to rebuild trust and foster cooperation are urgently needed. The consequences of inaction could be felt for generations to come.

A decisive decade: Collaboration as the key to stability

As divisions deepen and fragmentation reshapes geopolitical and economic landscapes, the need for effective global cooperation has never been more urgent, asserts the report. Yet, with 64% of experts anticipating a fragmented global order marked by competition among middle and great powers, multilateralism faces significant strain.

However, turning inward is not a viable solution. The decade ahead presents a pivotal moment for leaders to navigate complex, interconnected risks and address the limitations of existing governance structures. To prevent a downward spiral of instability — and instead rebuild trust, enhance resilience, and secure a sustainable and inclusive future for all — nations should prioritize dialogue, strengthen international ties and foster conditions for renewed collaboration, concludes the report.

Read the Global Risks Report 2025 at WEF, and follow the conversations at the WEF Annual Meeting on the event site.

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According to the Appliance Standards Awareness Project’s (ASAP) Clean Lighting site, “In 2022, Vermont and California became the first states to phase out the sale of most fluorescent bulbs. In 2023, Hawaii, Oregon, Colorado, Maine, and Rhode Island adopted similar policies. In 2024, Washington, Minnesota, and Illinois became the eighth, ninth, and tenth states to adopt clean lighting legislation.”

Of note, January 1, 2025, is the phase-out date for pin-base CFL and linear fluorescent lamps in California, Colorado, Oregon and Rhode Island, and is also the phase-out date for screw-base CFL lamps in Colorado, Hawaii and Minnesota (see ASAP chart below).

As Sean Cash of emergency lighting provider Bodine related to FMLink:

Anecdotally, we are hearing it’s a pain point for facilities as they are forced to move to LED.  From the emergency lighting perspective, facilities that were running old fluorescent emergency ballasts are now forced to find something new.  This isn’t always easy, especially if the person involved isn’t up to date on TLED lamp technologies AND emergency ballasts / EM inverters / EM LED drivers.

Fluorescent lighting regulation and transition resources

FMLink editors have compiled a few resources below to help you determine the regulations in the state or states in which your organization operates, navigate the switch to LED lighting, and obtain any available rebates and incentives before they expire.

“Farewell to Fluorescent Lighting: How a Phaseout Can Cut Mercury Pollution, Protect the Climate, and Save Money,” a research report from the American Council for an Energy-Efficient Economy (ACEEE) and the Appliance Standards Awareness Project (ASAP) (March 2022), advocates for government policies that intend to limit mercury to no longer exempt fluorescent lighting, explaining that drop-in mercury-free LED replacements for linear and compact fluorescent bulbs (CFLs) are now widely available and provide the same or better lighting, longer product life and much lower total cost than fluorescents.

“Clean Lighting: Shining a Light on Clean Lighting Standards” from the Appliance Standards Awareness Project (ASAP) explains the benefits of replacing fluorescent lamps with LED bulbs and offers a Clean Lighting Advocacy Toolkit for those working on regulations at the state level, including Information Resources, Advocacy Example Material, and Bill Status 2022 and 2023. It also provides the summary chart below of effective regulation dates by states. ASAP’s “General Service Fluorescent Lamps” page explains this type of lighting and pertinent standards. The site also succinctly covers National and State efficiency standards for appliances and equipment.

“New Light Bulb Standards Will Lower Costs, Cut Climate Pollution” from ASAP explains how light bulb efficiency standards (nearly all aimed at LEDs now) finalized in April 2024 by the U.S. Department of Energy (DOE) will lower energy costs for households and businesses once they take effect in 2028. ASAP notes that federal standards still permit fluorescent lighting for some bulb types, including the four-foot tubes often seen in garages and offices.

“Understand U.S. Laws that Ban Fluorescent Bulbs to Build a Greener Future” from Earth Savers Energy Services offers a state-by-state overview linked to more information on each state, designed to help you get ahead of the legislative changes by understanding how the laws affect your business or organization depending on the state (or states) in which you operate.

“A State by State Look at Light Bulb Bans [Interactive Map]” from Regency Supply (October 2024) offers a thorough overview of general service lamps, compact fluorescent lamps and linear fluorescent tubes along with current regulations, a great State-level Restriction Summary chart, and an interactive U.S. map linking to each state’s regulations and lighting products suitable for that state.

“CA to End the Sale of Fluorescent Lighting Jan 1, 2025” from AIR CRE (October 3, 2024) provides an in-depth look at California’s CA AB 2208. After January 1, 2025, California will have effectively banned the final sale and distribution of all fluorescent lamps. Aside from specialty lamps primarily used for medical or industrial purposes, the ban applies to screw, bayonet, and pin base compact fluorescent lamps (CFLs) and linear fluorescent lamps (LFLs), commonly used in both commercial and residential buildings. AIR CRE explores what this means for business owners and property managers.

“Illinois Bill to Swap Fluorescent Lamps for LED Lights Awaits Governor’s Approval” from Facilities Dive gives an in-depth look at the Clean Lighting Act in Illinois that will prohibit screw-base or bayonet-base compact fluorescent lamps from being sold or distributed as new manufactured products on or after January 1, 2026. The bill also bans the sale and distribution of pin-base compact fluorescent lamps or linear fluorescent lamps as new products on or after January 1, 2027.

“Shifting Sands: 10 States Outlaw Fluorescent Lamp Sales” from Electrical Contractor magazine (August 2024) offers a short summary of the issue and the state regulations, and discusses what electrical contractors should know to stay in compliance and direct their customers.

“Fluorescent Lighting Bans: What Commercial Property Owners Need to Know” from FSG (November 2024) provides information specific to property owners, with reasons to upgrade to LED lighting now, and “Fluorescent Light Bulb Bans in California, Colorado, and Washington: What Businesses Need to Know” (November 2024) provides a state-by-state overview and offers services to help businesses remain compliant while enhancing energy efficiency and reducing environmental impact.

“The Strategic Roadmap of the Global Lighting Industry” from the Global Lighting Association shares knowledge on global lighting trends.

Retrofits and rebates

“Will the 2025 Fluorescent Tube Ban Effect Lighting Rebates?” from Incentive Rebate360 explains the bans in relationship to incentives, rebates and bonus programs that are currently available to incentivize businesses to switch from fluorescent to LED lighting, usually providing financial assistance to cover the upfront costs of upgrading. The company notes that the states with bans may modify or discontinue rebates, so businesses might face a narrower window of opportunity to capitalize on these rebates. Incentive Rebate360 recommends that businesses should prioritize completing their lighting upgrades before the bans take effect; their experts can help companies navigate regulatory changes more smoothly and take full advantage of the available incentives.

There are numerous LED manufacturers that sell lighting products suitable to meet the upcoming regulations.

For facilities managers (FMs) who need to replace emergency lighting, Sean Cash of Bodine points out that there are three different types of TLED lamps (Type A, B, and C), and the type of emergency lighting product you need for each varies.  The company offers solutions to replace each type of lamp, and Cash noted that BLK1000 and BLK1000FL EM (the latter featuring the FirstLink connected system) emergency lighting retrofit kits have proven particularly popular in California.

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The U.S. snapshot provides data disclosed to CDP-ICLEI Track in 2023 on local climate projects and investment needs according to each state and across key sectors, yielding valuable insights on how the rapid emergence of new funding and financing mechanisms such as the Inflation Reduction Act and Bipartisan Infrastructure Law can best be applied. The snapshot is a representative sample of infrastructure data and provides critical insight into the kinds of projects U.S. cities are seeking to advance for climate action, key areas for public and private investment, regional needs and disparities and opportunities for aggregation.

Designed to benefit local and state governments, the U.S. snapshot highlights an understanding of local project needs and tracking municipal climate action, particularly to awardees of federal funding initiatives like the Greenhouse Gas Reduction Fund, as well as technical assistance and capital market providers. The snapshot identifies 270 projects across the priority sectors of the Greenhouse Gas Reduction Fund, including 121 projects in buildings and energy efficiency from 80 cities, 88 projects in transport from 60 cities and 61 projects in renewable energy from 47 cities, totaling US$18.3 billion in financing needs.

On the strength of its annual disclosure process, CDP’s compendium of projects is expanding every year, which includes cities, states and public authorities disclosing their climate finance needs, along with details on the local impacts of climate change and ongoing mitigation efforts. In 2023, over 160 U.S. cities and six U.S. states, representing over 25% of the U.S. population, reported climate risks, climate action plans and projects at all stages of development through CDP.

Katie Walsh, CDP’s Head of Climate Finance for cities, states and regions and North America Lead, stated:

CDP’s snapshot of the latest U.S. project pipeline shines a light on how city and county projects can be supported under initiatives from the Inflation Reduction Act to deliver on the United States’ most historic funding package ever for climate action. Local governments across the country have been working on their climate, resilience and environmental goals and have a range of projects to achieve them. CDP stands ready to connect these projects with valuable preparation support, funding and financing initiatives as well as a mechanism to track local implementation.

Angie Fyfe, executive firector, ICLEI, remarked:

Congratulations to the 130 U.S. cities and counties who reported on climate projects seeking financing. We must continue to mobilize capital markets if we are to meet our collective goals to improve the livability of our communities, protect and restore nature and achieve a just transition to a carbon-free economy. Local governments that report through the CDP – ICLEI Track are leading this push for investment, and they should be recognized for their efforts.

CDP analysis covers a wide range of relevant metrics, including the status of climate action plans, mitigation and adaptation measures already in place, factors that impact a jurisdiction’s ability to implement projects and the identification of climate hazards. In addition to project data, CDP provides context on a local government’s social, political and economic environment, allowing stakeholders to place projects into the local context and appropriate funding.

Robert Fernandez, director, ESG Research, Breckinridge Capital Advisors, pointed out:

The U.S. municipal bond market plays a crucial role in financing the Country’s infrastructure plan, including supporting cities, states and public authorities in their response to climate change. Being able to access critical climate data and information, like from the CDP-ICLEI Track, helps municipal bond investors like Breckinridge access additional information about a local government’s climate challenges and goals.

The Snapshot, which tracks projects seeking financing and funding, is crucial to delivering on local environmental progress, says CDP.

Kate Wright, executive director of Climate Mayors, asserted:

Local governments stand at the forefront of climate action, driving change through innovative projects that increase community resilience. Climate Mayors are meeting the moment by leveraging unprecedented federal support to increase the scale and ambition of climate action. Tools that can help cities track climate progress, match projects with available funding and guide investments are critical to our shared success.

CDP encourages more cities and states and regions and public authorities to share critical information on their pending projects through the current 2024 disclosure cycle to help connect with increasingly available funding and financing opportunities through the Inflation Reduction Act.

View the 2023 U.S. Infrastructure Snapshot, with interactive map and graph, at CDP.

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The Biden-Harris Administration is leading by example to tackle the climate crisis through President Biden’s Federal Sustainability Plan, which establishes an ambitious path to achieve net-zero emissions from federal buildings by 2045.

Designed by ZGF Architects, the CISA HQ project consists of the construction of a new 630,000-square-foot federal building that will provide space to house CISA in a new sustainable state-of-the-art facility. The investment includes approximately $80 million to purchase low-embodied-carbon construction materials including asphalt, concrete, glass and steel, and $35 million to meet high-performance green building standards. These investments aim to promote domestic manufacturing and clean energy industries.

The CISA headquarters design sets a new standard for the energy performance of federal buildings in the National Capital Region, with an anticipated energy use of intensity of 28.9 thousand Btus per square foot per year, according to GSA. That is a 72% reduction compared to typical office buildings (CBECS 2003 baseline). Additionally, the project includes sustainable design features such as chilled beams, a dedicated outside air system with energy recovery and demand-controlled ventilation, advanced lighting controls, and a high-performance building envelope. Lastly, the project is anticipated to achieve LEED Gold v4 certification using the building design and construction standards set forth by the U.S. Green Building Council.

The addition of the CISA headquarters to the St. Elizabeths West Campus is part of an ongoing effort to consolidate DHS in one location to better facilitate collaboration across its components and offices, and inspire cohesive work to ensure U.S. infrastructure is secure and resilient. The move will also help bring skilled, high-tech jobs east of the Anacostia River. The projects at St. Elizabeths support hundreds of jobs each year, leveraging local ties and economic benefits to the community, including small businesses. Since 2010, the St. Elizabeths Opportunities Center has raised awareness about project objectives, employment and business opportunities, and other community benefits.

This announcement also furthers the Biden-Harris Administration’s Federal Buy Clean Initiative, under which the federal government is, for the first time, prioritizing the purchase of low embodied carbon materials that have lower levels of greenhouse gas emissions associated with their production, use and disposal. These investments aim to expand America’s industrial capacity for manufacturing goods and materials of the future, address the climate crisis, and create good-paying jobs for workers in the region.

The IRA includes $3.4 billion for GSA to use its buying power to promote the development and manufacturing of low-embodied carbon construction materials and to make federal facilities more  sustainable and cost-efficient. GSA’s IRA projects will implement new technologies and accelerate GSA’s efforts toward achieving a net-zero emissions federal building portfolio by 2045. Through these investments, GSA estimates that it could reduce carbon emissions by over 2 million metric tons in operational greenhouse gas emissions. That’s the equivalent of taking about 500,000 gasoline-powered passenger vehicles off the road for one year.

For more information about GSA’s IRA projects, visit GSA’s Inflation Reduction Act web page.

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According to a new Verdantix benchmark report of the most prominent building decarbonization consulting providers, five firms — CBRE, JLL, Schneider Electric, Siemens and WSP — demonstrated the most comprehensive and evolved services for building decarbonization.

The pressure for organizations to decarbonize buildings is mounting, driven by the need to improve corporate performance, comply with evolving regulations, and reduce energy costs. However, the path to decarbonization is complex, requiring multi-faceted strategies to achieve timely, cost-effective and long-term results. With many organizations still in the early stages of decarbonization, consulting providers are addressing the challenge by developing expertise to meet surging market demand.

The inaugural Verdantix Green Quadrant: Building Decarbonization Consulting 2024 report offers valuable insights for navigating this diverse market and for selecting the best-fit consultancy partner for your business. Key report findings:

• Organizations are prioritizing scalable and efficient decarbonization initiatives that optimize return on investment (ROI), minimize capital expenditure, and support corporate ESG reporting.
• Building consulting providers are prioritizing digital services to collect granular data and identify easy wins for decarbonization. Innovations such as JLL’s Carbon Pathfinder help overcome data barriers at the asset level.
• To address technical expertise gaps when decarbonizing buildings, consultancy firms are developing partnerships, such as Johnson Controls with KPMG, and Arcadis with Honeywell. These partnerships offer comprehensive program management through combined strategy consulting and digital solutions.

Connor Taylor, senior analyst at Verdantix, commented:

Organizations are increasingly pressured to decarbonize to improve corporate performance, comply with regulations, and lower energy costs. This requires significant capital, operational expenditure and multi-pronged strategies. As most organizations are still early in their decarbonization journeys, consulting providers are adapting their capabilities to meet this increasing demand. With a highly heterogeneous consultancy market, offering a wide range of interventions and strategies, buyers are seeking providers based on their real estate portfolios, intervention efficacy, and available capital.

To learn more, purchase the full Verdantix Green Quadrant: Building Decarbonization Consulting 2024 report at Verdantix.

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This year’s findings are unveiled through a series of articles exploring key areas of focus for corporate real estate teams: Managing the implications of shifting work patterns; Partnering with the C-suite to support CRE investment; Identifying CRE activities for “AI copiloting;” Moving from ambition to action on sustainability commitments; and Defining the future-fit CRE function. The first two articles, newly launched, dive into the effects of shifting work patterns on workplace expectations, and what the changing world of work means for the way the CRE function operates as more than 64% of leaders expect to increase and rebalance their headcount by 2030, in an attempt to recruit the right skills for the future.

Neil Murray, global CEO, Work Dynamics, JLL, stated:

Since our 2022 survey, the CRE landscape has become increasingly complex and dynamic, evolving toward better office use. We see that in these results, and in our conversations with clients. Looking ahead, business and CRE leaders working to drive talent and efficiency throughout their organization must consider the unique needs of their organization, and leverage tools such as tech, AI, and upskilling, as well as strategic partnerships across the value chain to enable the CRE function to reach its full potential as a powerful agent of transformation.

Competing visions on the most efficient workstyles create renewed CRE challenges

Business leaders are mainly focused on three corporate goals over the next five years: growing revenue through expansion and M&A (57%); attracting and retaining talent (53%); and achieving organizational efficiency (54%). However, the juxtaposition that lies between driving revenue growth through top talent and increasing efficiency requires leaders to delicately balance priorities and assess the role of offices as places that enable employees to deliver their best work.

Strong momentum toward office-based work since 2022 has brought forth expectations among respondents to increase use of office space (62%), where more than half of leaders plan to grow their total footprint over the next five years. Today, 44% of organizations are considered “office advocates,” who would like to see staff in the office five days a week — as compared to 2022, when just 34% of employees were working in the office full time. Hybrid work is here to stay, but the office is central to work again. Today, 85% of organizations have a policy of at least three days of office attendance per week, and 43% expect the number of in-office days to increase by 2030.

Globally, hybrid work is more likely to take place at large organizations in EMEA, where hybrid workstyles are considered a key part of the employee value proposition, and largely in sectors including e-commerce, energy and renewables, technology, and life sciences. Office advocates alternatively tend to be small-to-medium sized companies in APAC or the Americas, across sectors such as healthcare, retail and manufacturing. Beyond those big trends, the reality is often more complex, with different workstyles coexisting within many organizations.

Today’s office advocates also make a concerted effort to address diverse workplace needs — they are more focused on making accessible workplaces (49% vs. 36% of hybrid adopters), tailored to meet the needs of different generations, cultures and neurodiversity specificities, and may even pay a premium to occupy buildings with leading health and well-being credentials. With office attendance may also come new opportunities for compensation and career advancement: more than a third (39%) of respondents could envision introducing different pay and benefits to employees who attend the office regularly.

Cynthia Kantor, CEO, Project & Development Services, JLL, said:

The future of work looks different across companies and regions, reflecting the unique nature of organizations and employee needs. It keeps shifting and requires building evolutionary office programs and spaces, able to adapt to continuous changes in the workstyles. Globally, as CRE budgets and footprints receive new investment, the corporate real estate function must effectively partner with the C-suite to demonstrate the desired value.

The corporate real estate function can serve as a powerful agent of transformation, particularly with the use of technology, AI and the support of strategic partners

The value the corporate real estate function can deliver will vary depending on the needs of the organization and regional priorities. Globally, business leaders believe CRE can add the most value by supporting business growth (41%), enabling organizational efficiency (38%) and reducing operating costs (37%). Environmental, social and governance (ESG) factors are also an area in which the CRE function is expected to add value, especially in EMEA. Organizations in the Americas are more likely to expect CRE to support business growth, innovation and efficiency, while companies in Asia Pacific are more focused on digitization.

These varying expectations around value require agility throughout CRE functions, in a context where 41% of CRE decision makers report challenges with thinking and investing for the long term due to the pace of organizational change. The same percentage believe CRE is perceived as a cost center, rather than a value driver. Identifying the right metrics and ways to demonstrate value, in addition to strengthening relationships with the C-suite, will ensure CRE is more integrated into the wider business and positioned to quickly adapt to changing priorities — 46% of CRE leaders say influencing and leadership will be critical skills in the future.

Technology is also emerging with greater impacts for CRE, as more decision-makers expect to report to business transformation or technology by 2030. CRE leaders believe that 70% of their activities will be at least partially supported through the use of AI by 2030, and a quarter of the CRE function could be initially completed through automation — freeing up time for more strategic work. Nearly two-thirds (62%) of decision makers see technology and AI adoption as critical for enhancing the value that CRE delivers in the future. A “future-fit” CRE team should focus on high value-add tasks internally, while automation and AI take on routine and repetitive tasks and outsourcing partners are brought in for specialist tasks and individual projects.

Read the full The Future of Work Survey 2024 at JLL.

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