Introduction
Sustainable buildings have now become an integral part of the global push towards reduction in GHG emissions. In Canada, the building sector accounts for approximately 18% of national GHG emissions, underscoring the urgent need for energy-efficient and low-carbon construction practices. By implementing green building strategies, such as improved insulation, high-performance materials, and electrification, the sector can significantly reduce emissions and contribute to the country’s climate goals (Canada Green Building Council, n.d.).
In Ontario, buildings are the third-largest source of emissions, contributing 39 megatonnes (Mt), or 24% of the province’s total emissions, with 77% coming from natural gas use for heating. While Ontario has set a target to reduce emissions by 30% below 2005 levels by 2030, audits indicate stronger action is needed to meet this goal (Office of the Auditor General of Ontario, 2021).
The Role of Sustainable Buildings in a Net-Zero Future
Transforming Canada’s building sector is one of the most impactful ways to reduce emissions and lower operating costs for businesses. Currently, over 96% of building operating emissions come from space and water heating, most of which rely on fossil fuels like natural gas (Dsouza, 2024). By switching to energy-efficient alternatives such as heat pumps and embracing electrification, businesses can make significant progress in decarbonizing their facilities while cutting long-term expenses. Beyond emissions reductions, sustainable buildings improve air quality, enhance workplace comfort, and can significantly reduce energy costs for businesses. Retrofitting existing commercial properties and incorporating energy-efficient designs in new developments can drive both financial and operational benefits.
From an economic perspective, green-certified commercial buildings command higher rental rates, increased property value, and lower operational costs. Studies show that green buildings achieve 4-7% higher rental premiums and up to 7% higher asset values due to growing market demand for sustainable spaces (World Green Building Council, 2022; CBRE, 2022). Additionally, LEED-certified buildings report almost 20% lower maintenance costs and a 10% reduction in operational expenses within the first year (USGBC, 2015). Beyond financial advantages, green buildings can enhance workplace productivity and well-being. Employees working in sustainable buildings report higher cognitive function scores, fewer sick building syndrome symptoms, and increased overall productivity (Mariotti, 2023). As businesses look to optimize performance and create healthier, more efficient work environments, investing in energy-efficient and low-carbon buildings will be a key driver of long-term success.
Benchmarking
Benchmarking is a critical tool for evaluating a building's energy performance and identifying areas for improvement. By comparing a building’s energy use to established standards or peer performance, benchmarking creates data-driven baselines that allow building owners to assess water and energy efficiency, identify cost-saving opportunities, and prioritize upgrades to reduce utility expenses. Moreover, benchmarking is a prerequisite for developing building performance standards, as it provides the data necessary to set minimum energy efficiency requirements, and track progress.
In Canada, ENERGY STAR Portfolio Manager is commonly used to track commercial and institutional buildings’ energy use, water consumption, and GHG emissions. In Toronto, the Energy and Water Reporting Bylaw requires building owners with a gross floor area of ≥ 50,000 ft² to start reporting by July 2, 2024, while those with ≥ 10,000 ft² are required to report by July 2, 2025. This bylaw applies to commercial, industrial, institutional, and multi-unit residential buildings, covering approximately 7,500 buildings in the first phase and 16,100 in the second. These data help governments set priorities for retrofits and design policies for improved energy performance.
Benchmarking also plays a critical role in certification programs such as LEED (Leadership in Energy and Environmental Design). These certifications provide an opportunity for building owners to improve market value and demonstrate a commitment to environmental responsibility. Publicly disclosing benchmarking data further increases transparency, enabling tenants and buyers to make informed decisions about sustainable buildings. By leveraging benchmarking, building owners can reduce operational costs, improve building efficiency, and contribute to broader environmental goals.
Building Performance Standards in Canada
Several Canadian cities are developing Building Performance Standards (BPS) to set mandatory energy and emissions targets for existing buildings. Vancouver led the way as the first city in Canada to introduce building performance standards, setting an example for other municipalities. Toronto is advancing its efforts through the Net Zero Existing Buildings Strategy, which includes plans for an emissions performance reporting by-law to track and reduce building-related emissions later this year (Efficiency Canada, 2023). Finally, Montreal has a by-law requiring building GHG emission disclosures, which is setting the stage for future GHG emissions performance standards
How Achieve Sustainability Can Help
At Achieve Sustainability, we understand the challenges and opportunities that come with decarbonizing the building sector and are committed to guiding you every step of the way. We can assist you with benchmarking, green building certifications, GHG inventories, or setting GHG reduction targets. Reach out now to book a complimentary consultation!
References
Building Decarbonization Alliance. (2024). Jurisdictional scan of building performance standards in Canada (Version 2.0).
Canada Green Building Council. (n.d.). Building climate solutions. Canada Green Building Council.
CBRE. (2022). LEED-certified buildings command higher rents, even during market challenges.
Dsouza, A. (2024, December 13). Canada's green building revolution: Bridging the gap between vision and reality. Real Estate Institute of Canada.
Efficiency Canada. (2023). Toronto moving ahead on building performance standards: What you need to know.
Mariotti, T. (2023, September 11). Green building statistics (2024). RubyHome.
US Green Building Council (USGBC). (2015). Benefits of green building.
Ville de Montréal. (2024). Law concerning GHG emission disclosures and ratings for large buildings. Montréal.ca.
Office of the Auditor General of Ontario. (2021). Reducing greenhouse gas emissions from energy use in buildings.
World Green Building Council. (2022). Beyond the business case: Why you can’t afford not to invest in a sustainable built environment.
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