A big debate in commercial real estate is mandatory “public disclosure” of energy performance.
Does requiring buildings to participate in a program like ENERGY STAR, generate a rating, and then make that information available to the public encourage buildings to become more energy efficient?
We think that it does.
First, requiring buildings to just participate in ENERGY STAR is a great idea. It’s simple. It’s straightforward. It’s well-accepted as a reasonable standard for measuring building energy performance. And, industry statistics show that just joining ENERGY STAR leads to annual energy savings of over 2%. It gets building teams focused on energy – without spending a dime.
Second, public reporting of ENERGY STAR ratings creates competition. It allows buildings to compare themselves to peers in the market and strive to be better. And, hopefully, it gives a marketing edge to the best-performing buildings.