The Importance of Resiliency for ESG

Robbie Hobbs

Resiliency is as crucial to sustainability as transparency. Without it, we are at risk of creating systems that cannot withstand climate change. Following the devastating impacts of the February winter storm in Texas—resulting in $195 billion in damage and lost economic output—the Biden Administration’s recent $2 trillion infrastructure plan proposes up to $100 billion in funding to update the country’s electricity grid and increase resiliency against future climate threats.

As we unpack the aftermath of the Texas storm and other extreme weather events in the past year—from a record wildfire season in California to one of the most prolific nor’easters in history—real estate professionals are under even greater pressure to reimagine a better, more resilient world.

Thinking about preparedness and implementing proven energy supply solutions such as microgrids, solar photovoltaics plus energy storage and combined heat and power, will help to further improve resiliency while also potentially generating cost savings.

The stakes have never been higher

It’s no longer an option for building owners to wait for the next natural disaster to test their ability to keep the lights on. The impact of outages has severe financial consequences from loss of critical data, to e-commerce, as well as communications. The U.S. Department of Energy estimates power outages are costing American businesses around $150 billion per year. Planning for the most unpredictable of worst-case scenarios can literally mean the difference between life and death.

A recent study, for instance, found that the Southeastern U.S. may need 35 percent more electricity capacity by 2050 to deal with just the known hazards of climate change.

Today, storms are more volatile, and more people, companies and building systems are increasingly dependent on technology. Upfront investment in power system resiliency—including energy storage, weatherization, CHP and grid security—helps reduce potential losses resulting from tomorrow’s major storms, wherever they may occur.

Understanding the threats and vulnerabilities and evaluating energy supply reliability provides leaders with yet another opportunity to implement resilient and sustainable technology solutions. Resiliency and reduced environmental impact can in fact go together, as many building owners are looking to deploy greener alternatives to traditional diesel generators. Two such examples are microgrids and CHP.

Microgrids as the panacea for uninterrupted power

Microgrids— where a building or other defined area incorporates an interconnection of generation and load that can act independently of the grid to which it is connected —are catching on nationwide as cities and organizations recognize the value of being energy self-sufficient.  They are one way to prevent blackouts from reoccurring. If property owners integrate their own microgrids, it creates the ability to operate independently from utilities and power their buildings through a combination of hardware and software technologies.

Microgrids can also “share power” with residential neighbors in the event of an emergency. With population growth booming in areas of the country like metropolitan areas around Texas, there is much higher demand for energy. The U.S. Department of Energy expects a 60% increase in the number of microgrids expected to come online by the end of this year, the majority of which are projected to be solar-powered. Microgrids can help protect against power interruptions while also contributing toward net-zero emissions goals when powered by renewables.

CHP can increase efficiency by 75%

CHP, also known as cogeneration, produces electricity and thermal energy on-site, instead of relying on electricity from a utility coupled with an on-site boiler or furnace. This increases energy security by producing energy at a facility or building. Efficiencies and cost savings vary by technology, with fuel cells and reciprocating engines generally the preferred options for maximum savings. CHP systems are most common in industrial and campus settings like hospitals and universities but do have benefits for multi-family buildings as well.

Together with governments, utilities, and developers, we can create a built environment that focuses on ESG and R to better prepare for climate events, reduce our footprint and lower costs.

Robbie Hobbs is global product group lead for sustainability and workplace management at JLL.