Reimagining buildings & cities for sustainable impact
- By Manish Kumar
- 23 Apr 2025
- 4 min read
- >1/2of global CO2 emitted by buildings
- 70%of global CO2 emitted by cities
- 37%of global CO2 emitted by buildings
Over half of the world population lives in urban environments, with projections to reach nearly 70% by 2050 according to the UN. These environments are generally very energy-intensive due to transportation and buildings, with heating and cooling being the major contributor to building energy use. Consequently, cities now contribute to 70% of global CO2 emissions, and buildings contribute to 37%.
However, where urbanization poses many infrastructure challenges, it can also be part of the solution to climate change. We have the opportunity to decarbonize our cities and buildings. If we succeed, sustainable cities could offer the most promising future for our lives.
Since buildings and cities are major contributors to emissions, there is significant potential for them to become energy resilient, reduce their embodied and operational carbon emissions, and contribute to achieving a net-zero world by 2050.
The good news is that the technology needed to achieve net zero already exists: we can activate energy efficiency, electrify, and leverage local renewable resources. The solutions are here; it's a matter of implementing them – and doing so swiftly.
There are three main reasons for the increasing demand for decarbonization and energy-efficient solutions:
Corporate actions
Over 3,000 companies worldwide have committed to net-zero goals, with 1,600 of them having taken net-zero targets with the Science Based Targets initiative. These companies are acting within their value chains to reduce emissions. In real estate, this translates into increasing demand from tenants for decarbonized and sustainable workplaces and offices.
Goverment and cities initiatives
Local and national governments, as well as cities, have also set these types of targets. This means they are reducing their own carbon emissions and implementing regulations to deliver meaningful reductions in the private sector.
Energy efficiency and resiliency
The cheapest form of energy is the energy you never use, the financial gains from sustainable change are compelling. Energy efficiency and resiliency allows for cost savings and improved value: direct cost savings linked to reduced energy consumption, and asset valuation preservation with potential to drive rent premiums in some markets.
As 80% of the buildings that exist in cities today will remain in 2050, making them more energy efficient is the obvious first step to tackle the net-zero challenge. How can we achieve this?
There is an immediate and significant opportunity in retrofitting and upgrading existing building infrastructure to reduce their carbon emissions.
And we must combine digitalization with onsite energy generation to optimize energy consumption.
Digitalization: provides cost benefits while ensuring a high-end, customized occupant experience. It encompasses a range of automation and digital solutions, including artificial intelligence (AI) and machine learning (ML), to save and optimize energy consumption.
Microgrids: enable the use of renewables, such as solar, to generate and consume energy locally, without relying solely on the main grid.
Grid: grid integration offers opportunities for buildings to optimize their electricity consumption while also benefiting the grid operator.
Electrification is the final decarbonization lever: as cities develop and electrify more, there is a growing opportunity to meet demand with cleaner energy sources. We can already replace existing fossil fuel-based processes with electricity powered by renewable sources, such as heat pumps for heating and cooling. Additionally, new forms of connections such as demand response programs and virtual power plants ensure buildings' independence and resiliency. These solutions can alleviate the grid during peak hours and enable critical loads to be powered by local generation in case of outages.
Building operations are very dynamic. Digital tools can measure and monitor various energy-consuming equipment to optimally allocate energy resources and identify opportunities for efficiency.
The Capgemini case
A powerful example is how we supported Capgemini in building and executing a vision to achieve sustainability goals in its Energy Command Center, which controls 23 campuses in India. All energy equipment was retrofitted, and Schneider Electric provided an energy management suite to centrally monitor, manage, and control all energy-consuming assets.
EcoStruxure Building and Power solutions connect, monitor, and control energy efficiency through building, IT, power, and asset management, while EcoStruxure Microgrid Advisor provides guidance on effectively managing distributed energy resources. To ensure condition-based maintenance, EcoCare offers remote monitoring and dispatches on-site service when necessary.
With clear results in energy reduction, cost savings, and optimal utilization of manpower: Capgemini reduced energy consumption by 25 GWh and saved €3 million in costs.
The need for cost-effective and sustainable solutions has never been greater. Fortunately, we have these solutions at our fingertips. Technology allows us to save energy, consume cleaner and better energy, and enable resiliency for the grid, buildings, and ultimately, people and the planet.
Looking ahead to 2050 and beyond: with better utilization of resources, people living in cities will enjoy better well-being. The call is for businesses and governments to come forward and take action now to deliver a future that meets the world’s sustainable development goals or all.
Watch the Buildings & Cities episode of our “Reimagining Industries for Sustainable Impact” docuseries with NBCU Catalyst.
To learn more about digital and AI solutions in action for sustainability and efficiency, explore our full docuseries.
Latest in Technology and Innovation
Unlocking the power of collaboration: three strategies for a sustainable supply chain with your suppliers
Reimagining data centers & AI for sustainable impact
Reimagining buildings & cities for sustainable impact
The potential of small and mid-size buildings to drive sustainability
