Optimizing workplace sustainability is crucial for companies today. With growing directives and standards on sustainability and energy efficiency for corporate buildings, along with stringent ESG policies, it is imperative for companies aiming to stay ahead of the curve to manage their energy consumption effectively.
Moreover, with the rise of hybrid work, many companies are struggling with space optimization, discovering that a significant portion of their office space is underutilized. To address inefficient space utilization and enhance sustainability, companies can benefit from a holistic approach to workplace optimization. Not only boosting sustainability efforts but also maximizing space efficiency.
In this article we’ll delve into:
- The necessity for companies to comply with energy efficiency norms
- The importance of office space optimization in a hybrid work era
- The example of Merck achieving energy efficiency and space optimization.
Energy Efficiency Compliance: Essential for Businesses
For many companies, the transition to sustainable practices is no longer optional. Companies are now obligated to pursue paths to achieve net-zero emissions, demonstrating their commitment to environmental responsibility.
Government regulations and directives, such as the EU Energy Efficiency Directive (EED), play a pivotal role in mandating concrete steps for companies across Europe to reduce energy consumption and emissions. The EED requires member states to implement energy efficiency measures in various sectors, including industry, buildings, and transport. Additionally, individual countries within the EU may have their own specific regulations and schemes, such as the UK’s Energy Savings Opportunity Scheme (ESOS) or Germany’s Energy Services Act (EDL-G), which further enforce energy efficiency standards tailored to local conditions and industries.
Implementing energy efficiency policies and moving towards sustainability can be beneficial for companies, not only because they ensure regulatory compliance but also due to other factors such as:
- Financial Stability: Efficient energy management reduces costs and enhances economic resilience.
- Customer Expectations and Loyalty: Consumers prefer companies committed to sustainability, boosting customer loyalty.
In summary, complying with energy efficiency policies helps companies meet regulatory demands, achieve sustainability targets, ensure financial stability, and satisfy customer expectations.
Why Office Space Optimization is Crucial in the Hybrid Work Era
Hybrid work has transformed the workplace landscape. Before COVID-19, managing office space was straightforward. However, post-pandemic trends have left many companies grappling with underutilized spaces. The amount of underutilized space in companies due to the shift to hybrid work can vary significantly depending on factors such as industry, company size, and specific remote work policies.
While unused spaces may seem inconsequential, optimizing these areas can offer significant benefits. Let’s explore how your company can gain from a space optimization approach:
- Enhanced Employee Experience: A well-optimized office space can significantly improve the employee experience by providing a comfortable, efficient, and flexible environment. This is especially important in a hybrid work model where employees split their time between home and office.
- Cost Efficiency: By optimizing office space, companies can reduce unnecessary costs associated with maintaining underutilized spaces. This includes savings on rent, utilities, and maintenance.
- Energy Efficiency: Optimized office spaces can lead to better energy management. For example, Spacewell’s solutions have been used by companies like Merck to improve energy efficiency in their buildings.
- Flexibility and Adaptability: In a hybrid work era, the ability to quickly adapt office spaces to changing needs is vital. Flexible workflows and smart workplace apps can help manage and adapt spaces efficiently.
- Data-Driven Decisions: Using workplace analytics, companies can gather data on space utilization and employee preferences. This data can inform decisions on how to best configure and use office space to meet the needs of a hybrid workforce.
Now, we’ll take a look at Merck example:
The Objective: Improve Space Efficiency and Sustainability
The Merck Group aimed to drastically reduce CO2 emissions from its real estate to lead in sustainable energy, save resources, and optimize workspaces for hybrid work. Recognizing the link between space and energy efficiency, they prioritized understanding space occupancy and utilization. Under-utilized and energy-inefficient areas, including entire floors or buildings, could then be temporarily shut down, taken out of service, or repurposed.
How Merck Optimized Space Efficiency and Energy Efficiency in its Commercial Buildings
Merck leveraged Spacewell Workplace to collect occupancy data and analyze utilization, allowing them to accurately estimate daily workspace needs. This enabled Merck to concentrate needed workspace in fewer buildings, shutting down energy-inefficient and unused areas to save energy, especially in winter.
Employees can easily book workspaces using the Workplace Experience reservation tool, which shows available spaces on digital floor plans. This flexibility allows employees to work in different buildings or floors as needed.
Real-World Results
During the Covid pandemic and hybrid work period, nine buildings were partially or fully hibernated by minimizing heating and shutting down non-essential electrical circuits. Workstations were concentrated in the most energy-efficient buildings to ensure optimal conditions for all employees.
By reducing energy consumption by 50 to 60 percent, the Merck Group is saving about 150,000 tons of CO2 in its office buildings.
If you want to learn more about how Merck achieved these results and which were the next steps, download the free Merck Case Study now.
About the Merck Group
Merck, the world’s oldest operating chemical and pharmaceutical company, has been a leader in innovation since 1668. Embracing forward momentum through technology, Merck integrates digital solutions to optimize and sustain its corporate real estate. In healthcare, life sciences, and electronics, Merck’s teams create customer-centric solutions, supported by a global presence with 66 sites and 58,000 employees. From their headquarters in Darmstadt, Germany, Merck is dedicated to providing life-enhancing products and services worldwide, continually striving to improve lives.
