Survey on CO₂ Reduction in Existing Buildings: Data and Artificial Intelligence as Key Solutions

The real estate industry faces a major challenge: by 2050, the European building stock is supposed to be climate-neutral. However, the current status shows that there is still a longway to go. According to the German Federal Environment Agency, the building sector emitted around 100.5 million tons of CO₂ equivalents in 2024. While this is 2.3 percent less than the previous year, the permitted amount was only 95.8 million tons. At the same time, concerns about depreciation and increasing regulations are growing.

But what is preventing the industry from making faster progress? And which technologies offer viable solutions? A sector-wide survey conducted by aedifion and Rueckerconsult provides insight into the industry's current sentiment. The 58 participants represented asset, property, facility, and investment management, project development, and real estate financing.

Political Pressure Meets Lack of Strategy

The survey reveals a clear dilemma: Against the backdrop of the Paris Climate Agreement, 73 % of respondents have already looked into the decarbonization of their properties and fear a loss of value if no action is taken – nearly a third even see the risk of their buildings becoming stranded assets. However, strategic planning is lacking: More than half of the participants do not have a decarbonization strategy for their own or managed portfolios. Among those who do, less than a quarter are aware of their properties’ current CO₂ emissions.

Meanwhile, the CO₂ footprint of buildings is gaining importance in the transaction market. Alexander Roth, ESG & Operations Director at Savills IM, emphasized at the press conference presenting the study:

„If CO₂ emissions are too high, this can prevent a sale from happening in the first place.“

Data as the Key – but Quality Remains Insufficient

Despite the lack of clear strategies, the industry is aware of its responsibility. At the press conference, Iris Hagdorn, Head of Sustainability at HIH Invest, stressed the need for a long-term, portfolio-level approach:

„The real estate industry has moved away from short-term ESG measures for individual buildings and is now developing long-term strategies for sustainable portfolio management. This approach is more effective and sustainable.“

However, without a solid data strategy, decarbonization remains a black box. This is precisely where many companies struggle: 42 % of respondents with a decarbonization strategy rely on data from operating coststatements, while a quarter use smart metering or sensor technology.

Yet, overall, data quality remains poor. On a scale from 1 (very poor) to 10 (very good), respondents rate the quality of their consumption data at an average of just 5.5. This comes as no surprise given that the data collection methods mentioned above only provide aggregated values and do not allow for in-depth analysis, unlike, for example, a cloud platform for digital building operations optimization.

A clear gap also emerges when analyzing approaches to CO₂ reduction potential: While 50 % of respondents with a decarbonization strategy rely on external consulting firms, only 25 % use specialized software – the most efficient way to digitally unlock optimization potential.

Building Automation and Heat Pumps – The Underrated Potential

Decarbonization efforts are still dominated by short-term solutions: 59 % of respondents focus on replacing heating systems or switching to green electricity. In contrast, building automation and heat pumps are mentioned the least, despite their significant efficiency potential and crucial role in transitioning to smart grids and flexible energy supply systems.

ESG Manager Alexander Roth emphasized that traditional insulation measures often fail to deliver the desired results, particularly in newer buildings. Instead, the choice of energy sources and building technology plays a decisive role. At Savills IM, simply switching from gas or fossil-based district heating to heat pumps has already achieved energy savings of over 50 %.

A recent example analysis by aedifion also highlights that for older buildings, the first priority should always be optimizing the operation of existing systems before considering major renovation measures.

Artificial Intelligence as a Key Technology

AI-powered software solutions can achieve energy savings of up to 40 % without expensive structural modifications. However, the survey reveals skepticism among many market participants. While nearly half of respondents are open to using AI in the future, a third remain hesitant.

Yet, AI offers tremendous advantages, especially when it comes to analyzing and optimizing operational data. Dr.-Ing. Johannes Fütterer, CEO of aedifion, elaborated on this during the press conference:

„At aedifion, we leverage AI to interpret operational data, optimize control strategies, and make the vast amounts of structured data available across various systems."

In this context, Prof. Dr. Henric Hahr, Head of Asset Management at Real Blue, emphasized the need to view buildings as interconnected systems rather than a collection of isolated technologies. The experts at the press conference agreed: Only with an intelligent, seamlessly controllable infrastructure can AI deliver its full potential.

GEG Compliance – Increasing Regulatory Pressure

When it comes to regulations, everything comes full circle, as compliance with legal requirements is becoming a decisive factor for the future viability of real estate. Starting in January 2025, § 71a of the German Buildings Energy Act (GEG) will require larger non-residential buildings with heating, cooling, or ventilation systems exceeding 290 kW of rated output to be equipped with building automation and control systems.

However, nearly half of the survey respondents have yet to address this requirement – an oversight that poses a significant risk, potentially diminishing the long-term attractiveness of properties in the investment market. AI-driven solutions, such as aedifion’s TÜV-certified platform, enable straightforward and verifiable compliance with these regulations while also aligning with the underlying EU Energy Performance of Buildings Directive (EPBD).

Conclusion: The Industry Must Take Action

While the study provides only a snapshot of industry sentiment, it serves as a clear wake-up call. Awareness of the need for decarbonization is there – but gaps remain in implementation. The key to decarbonization lies in the intelligent use of data and technology. The time for hesitation is over – now is the moment to develop strategies, implement smart solutions, and future-proof real estate.