Europe has ambitious climate targets, but now needs to take concrete action to achieve them. One key area where companies can play a leading role in the drive towards Europe’s climate goals is rapidly improving the energy efficiency of the continent’s buildings, in concert with governments.
Today, buildings account for around 40% of energy consumption and 36% of greenhouse gas emissions in the EU, and energy efficiency improvements can help bring those emissions down. Yet renovation rates languish at a mere 1% per year – far below the 2.5% needed to meet net zero by 2050 according to the IEA. Since 85-95% of today’s buildings will still be standing in 2050, the need to renovate Europe’s building stock is non-negotiable.
Corporates have technologies, expertise, capital and a specialised workforce to help tackle the issue, and many are already showing the way forward by slashing emissions and increasing the energy efficiency of their own buildings and operations. Our Renovation Revolution project is tapping into this expertise, bringing together eight leading companies – Carrier, CBRE, Danfoss, PwC, Rockwool, Siemens, Signify, and VELUX – with subnational governments and NGOs, to explore the latest energy efficiency innovations, and how we can scale them up to drive down emissions in European buildings.
With this in mind, we asked some of our partners to share how their organisation is driving the renovation revolution, and how other corporates can follow their lead, accelerating their own energy efficiency journeys.
How does your organisation champion energy efficiency, and why is this important?
"Being part of the solution to build a better future is our purpose at Danfoss. And energy efficiency is one of the most crucial, simplest and cost-efficient approaches available to meet global climate goals. In decarbonising our own operations globally, we apply the same approach that we bring to our customers. We have coined this three-step approach: Reduce, Reuse, Re-source."
Andrea Voigt, Vice President, Head of Global Public Affairs, Sustainability and Communication, Danfoss Climate Solutions
"Energy efficiency is a cornerstone for reaching climate neutrality fast, and in a cost-effective way. That’s why we support an ‘energy efficiency first’ approach, which we also apply ourselves: At VELUX we aim to reduce our emissions from production and operations by 100% by 2030, and to achieve this, we are focusing on energy efficiency across all our sites, alongside shifting to 100% renewables."
Fleming Voetmann, Vice President, External Relations & Sustainability, VELUX Group
What role can your company play in driving up Europe’s renovate rate and us meeting Europe’s climate goals?
"To meet Europe's decarbonisation goals, we must accelerate the rate at which buildings are renovated. One of the quickest, least intrusive aspects of building renovation is lighting. By upgrading buildings with connected LED lighting systems, we can reduce energy consumption by up to 80%, while making them more liveable, productive and engaging spaces."
Mario Giordano, Global Head of Public & Government Affairs, Signify
"Carrier HVAC solutions plays a key role in accelerating Europe’s climate goals by providing high-efficiency heating, ventilation, and cooling systems solutions that help to reduce energy consumption and carbon emissions. Our advanced technologies integrate smart controls, enhancing building performance and energy efficiency while aligning with Europe's targets for emissions reduction and sustainable energy use."
Didier Genois, Vice President & General Manager, Carrier CHVAC EMEA
What tips can your organisation offer to companies just starting out on their energy efficiency journey and keen to take part in the renovation revolution?
"Get started! Boosting the renovation rates, and depth, of existing buildings through energy efficient renovations is essential to hitting the 2050 energy & climate targets. It also provides multiple benefits beyond that, such as improved indoor environmental quality, leading to better health and well-being. To reap all these benefits, it’s important to take a holistic approach to building renovations."
Fleming Voetmann, Vice President, External Relations & Sustainability, VELUX Group
"Any organisation should start with an energy audit to identify opportunities for improvement – prioritising high-impact upgrades such as efficient HVAC systems. Also look to implement intelligent, digital technologies that enable remote monitoring, energy use optimisation and preventive maintenance of equipment. Finally, engage experts to develop a long-term strategy, combining quick wins with sustainable investments to maximise energy efficiency and savings."
Didier Genois, Vice President & General Manager Carrier CHVAC EMEA
"If businesses, cities and households around the globe were to switch to LED and connected lighting, this would eliminate 420 million tons of global CO2 emissions and save 870 TWh of electricity – the equivalent of half the emissions generated by the aviation industry and more than enough to power every electric vehicle on the road today. Lighting is one of the quickest, most effective ways to make progress in this area, and the time to act is now."
Mario Giordano, Global Head of Public & Government Affairs, Signify
"We’ve learned that sequence matters. To decarbonise, we must reduce, reuse, and re-source energy. The order of these steps is critical to reducing emissions in a rapid and cost-efficient way. Our HQ in Nordborg, Denmark, which achieved CO2 neutrality in 2022, is a prime example of the success of the three-step approach. We’ve also shown that it’s good for business with most solutions giving a payback time of less than three years."
Andrea Voigt, Vice President, Head of Global Public Affairs, Sustainability and Communication, Danfoss Climate Solutions
In October, Renovation Revolution is launching the Renovation Revolution Handbook, a unique guide which will share insights on how corporates and subnational governments can collaborate to drive up stubbornly low European renovation rates. We look forward to sharing further insights on how corporates can draw on their expertise, and share it across the value chain, to unlock a renovation revolution in Europe.
