Energy Challenges for Buildings – and How to Solve Them Smartly

Energy savings, ESG targets and efficient operations: What do we expect from buildings today?

Buildings account for up to 40% of global energy consumption. In Europe, according to BPIE, as many as 97% of buildings are considered inefficient and in need of modernization. The situation is similar in the commercial sector: according to the US EPA, the average building consumes up to 30% more energy than necessary.

Energy costs represent 10–60% of a building’s operating expenses. And up to 70% of this consumption is tied to heating, cooling and ventilation. What’s more – a significant portion of losses remains hidden in operational data that nobody is actively monitoring.

In practice, 30–50% of energy-related costs can be caused by poor system management, unnecessary operation or suboptimal procurement strategies.

But how do you uncover hidden inefficiencies?

What should you focus on – and what actions can deliver real savings?

There’s no one-size-fits-all answer. But what we do know from experience is that heating and cooling – often including ventilation – are nearly always the biggest energy drivers in commercial buildings. To analyze a building’s energy profile, identify inefficiencies, and measure the impact of improvement measures, data is essential. It’s not just about collecting consumption numbers – you need to interpret them, benchmark them, and turn them into meaningful insights that guide your decisions.

We highlight three critical energy challenges in commercial buildings, explain their causes and impact, and show how they can be addressed using data-driven solutions like FLOWBOX.

Challenge 1: High Operating Costs

Energy can account for up to 60% of total building operating costs – yet many buildings are still managed based on estimates, outdated utility bills or monthly averages. Without a detailed understanding of what consumes energy, when, and why, optimization is nearly impossible.

Why it happens

Lack of granular data on the behavior of individual systems (e.g. heating, cooling, lighting).
Building systems don’t respond to real-world conditions such as occupancy or weather.
Many inefficiencies remain unnoticed – such as excessive heating outside working hours, simultaneous heating and cooling, or standby consumption.

The result? Unnecessary energy waste – often in double-digit percentages – and no solid basis for optimization or investment planning.

How to address it in practice

Start by monitoring actual energy consumption – not only overall, but by individual systems and zones.
Segment your building into logical blocks (e.g. offices, technical rooms, common areas, tenant units) to pinpoint where it makes sense to act.
Benchmark your systems – compare heating, cooling, ventilation, water use and lighting with industry standards to detect outliers.
Analyze time-of-use patterns – such as night usage, weekend activity, standby consumption or unexpected peaks.
Track trends over time and set measurable savings targets.

How FLOWBOX helps

Provides real-time monitoring and analytics of energy use – broken down by system type, device or building zone.
Integrates existing meters and sensors into a unified platform, and recommends supplementary metering where needed.
Enables automated, algorithmic control that responds to real indoor/outdoor conditions (e.g. weather, occupancy, solar production).
The FLOWBOX Data Intelligence module identifies hidden waste (e.g. night usage, heating/cooling overlap), recommends savings actions, calculates ROI and continuously tracks real-world impact.
Monitors operational deviations and alerts you to potential issues – such as sudden consumption spikes or system mismatches.

Challenge 2: Outdated Technologies and System Fragmentation

Even relatively modern buildings often operate on technologies that were never designed for today’s standards. Key systems – heating, cooling, ventilation, lighting – often work in isolation, controlled manually or through individual automation setups. What’s missing is a unified control layer that sees the whole building as one system and optimizes its performance accordingly.

Why it happens

Technologies were installed gradually and by different vendors, with no shared architecture or integration.
Systems lack real-time data sharing or mutual awareness – each operates in its own “silo.”
No central platform exists to coordinate all systems and evaluate building performance as a whole.
Most systems operate based on fixed time schedules rather than real building conditions – such as occupancy, weather, or energy prices.

The result is systems working against each other instead of together: unnecessary ventilation, heating and cooling running in parallel, or rigid time settings that don’t match actual needs. This leads to higher energy consumption, more wear and tear, and less comfort for occupants.

How to address it in practice

Map all major systems and their current control logic – identify gaps, overlaps and lack of coordination.
Establish a central overview and unified control to ensure systems react as one, not independently.
If full system replacement isn't feasible, aim for interoperability via open protocols (e.g. BACnet, Modbus).
Shift from fixed schedules to dynamic control based on real-time data – let systems respond to actual occupancy, usage and conditions.
Implement data-driven automation rather than static rules.

How FLOWBOX helps

Connects technologies across brands and generations – no matter how old or new they are.
Acts as a central “brain” for the building, collecting data, optimizing performance, and coordinating decisions in real time.
Prevents system conflicts – such as simultaneous heating and cooling, adjusts ventilation to match occupancy, and dynamically manages water systems.
Enables remote control and full visualization, even for legacy systems that originally lacked smart functionality.
Provides tools to plan smart upgrades, showing where investment will yield the highest ROI.
FLOWBOX Data Intelligence detects dynamic inefficiencies, recommends corrective actions, calculates savings, and measures their impact over time.
Supports automated, condition-based control that takes into account factors like weather forecasts, occupancy patterns or on-site renewable energy production.

Challenge 3: Growing Pressure from ESG and Sustainability Standards

Sustainability is no longer a nice-to-have — it’s a core requirement for real estate. Investors, tenants, and regulators now demand that buildings not only perform efficiently, but also demonstrate transparency and progress toward environmental, social and governance (ESG) goals. Properties that can’t prove their ESG credentials risk losing value and access to capital.

Why it happens

Investors, lenders and tenants require clear data on emissions, energy use and operational impact.
ESG requirements are now part of decision-making processes — influencing asset acquisition, tenant selection, and financing.
Certifications such as BREEAM, LEED or WELL are becoming essential to stay competitive, but demand high-quality, continuous data.

Without reliable operational data and a measurable sustainability strategy, buildings risk falling behind — struggling to attract premium tenants, meet regulatory demands or qualify for green funding.

How to address it in practice

Start with real-time operational data — without it, you can't manage energy use, emissions or evaluate the impact of sustainability measures.
Develop a clear decarbonization strategy that includes measurable and auditable goals.
Focus on relevant green certifications for your asset class and gather the data required to meet their standards.
Monitor not just energy, but also occupant comfort, water use, system performance and utilization — all of which influence ESG ratings.

How FLOWBOX helps

Provides comprehensive, real-time monitoring of energy, water, emissions and operational metrics.
Supports ESG and decarbonization strategy planning — including target setting, progress tracking and impact measurement.
Delivers export-ready reporting for ESG frameworks and supports green building certifications like BREEAM, LEED or WELL.
Enables portfolio-level benchmarking to identify best practices, challenges and priority areas for investment.
Prepares buildings to comply with future ESG regulation and maintain long-term value and attractiveness for demanding corporate tenants.

Smart Building Operation Boosts Property Value

Operational efficiency is no longer just a technical concern — it’s a strategic priority for building owners and facility managers. Detecting hidden inefficiencies, solving them systematically, and making data-driven operational decisions brings not only cost savings, but also long-term benefits: greater reliability, improved comfort, and readiness for ESG requirements.

FLOWBOX gives you the tools to monitor, analyze and control building operations as a whole – regardless of the building’s age, system complexity or technology stack.

Energy optimization today impacts far more than utility bills — it directly affects a property’s market value and appeal to tenants.
Buildings with smart operational control have better negotiating power, lower vacancy risk, and higher financial viability in the eyes of investors.

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