Calls for more retrofitting of ‘dull’ buildings to tackle climate crisis

A new report has revealed that shifting focus to retrofit everyday commercial buildings will help tackle delays in improving energy efficiency in buildings.

Research by climate analysts Building Atlas revealed that “significant energy savings” could be achieved by looking at “boring” buildings instead of flagship properties.

It found that at the end of 2024, only 22.2 per cent of UK buildings complied with future energy efficiency standards, meaning that the remaining 77.8 per cent faced the risk of becoming stranded assets.

“At the current retrofit rate for the commercial building stock of approximately 1-1.5 per cent per year, it would take the remainder of the 21st century to achieve the UK’s 2050 building decarbonisation targets,” it said.

Its report, The Beauty in ‘Boring’ Buildings: the business case for retrofit beyond flagship assets, reveals retrofit opportunities in so-called “boring” buildings could deliver internal rates of return (IRR) as high as 92 per cent.

According to UK Green Building Council research cited in the report, 90 per cent of carbon savings can typically be achieved at just 60-70 per cent of the cost of pursuing BREEAM Outstanding ratings.

Building Atlas is calling for a tiered retrofit strategy, prioritising fast, scalable interventions such as LED lighting, smart thermostats and intelligent energy controls, particularly across the UK’s 29 million ageing non-domestic and domestic buildings.

“It’s time to shift from chasing awards to chasing impact,” said Nick Taylor, chief executive of Building Atlas.

“The most effective climate investment in real estate isn’t in iconic West End offices – it’s in thousands of suburban offices and warehouses.

“Our analysis shows that a carefully prioritised retrofit programme across ‘boring’ buildings can achieve carbon savings equivalent to flagship projects – at a fraction of the cost.”

The report concludes that by shifting focus big savings could be achieved.

“Retrofitting commercial buildings for energy efficiency is a vital step towards a sustainable future. However, it is crucial to recognise the diminishing marginal impact of retrofit investment and adopt a sensible, cost-benefit driven approach,” the report said.

“By prioritising cost-effective measures and setting realistic energy-efficiency targets, building owners and operators can achieve significant energy savings while ensuring a positive return on investment. We recommend portfolio owners examine the ‘boring’ buildings in their portfolios, as this is where they may find the biggest savings, for the lowest cost.”

UN data shows that energy consumed by buildings is responsible for 21 per cent of global greenhouse gas emissions.