Executives and senior figures from some of Canada’s leaders in real estate sustainability mapped out how businesses can move from mission statements to action at the Green Building Business Summit.

Held Thursday in the Toronto office of engineering consultancy firm Arup, the Canada Green Building Council (CAGBC) organized the event to foster discussion on key topics in the sector, such as managing physical climate risk and the state of investment.

On a panel about practical approaches to decarbonization, speakers detailed how they are transitioning their companies from goals to reality, while dealing with the challenges of regulations, costs and balancing tenant needs.

“When I’m dealing with responding to those questions, what is helpful is: I have a strategy, I have a North Star, I have an understanding of what’s important to the company,” Karen Jalon, vice-president of climate and sustainability at Toronto-based Cadillac Fairview, said.

Sustainability teams must clearly explain how decarbonization “will make your personal and professional outcomes better,” noted Jenny McMinn, partner, communications and impact at Ottawa-based Windmill Developments.

Data and the human impacts of decarbonization

Diana Mokhallati, vice-president of market growth at the CAGBC and moderator of the decarbonization panel, asked participants how the conversation around carbon has shifted at the executive and board levels of their companies since climate targets became more common.

Jalon recounted how she heard “real rumblings” from Cadillac Fairview’s highest levels when its net-zero commitment was made. The board recognized the implications of meeting its targets, the need for increased reporting and the risks of being accused of greenwashing.

Windmill comes from a different perspective, as a private company with sustainability embedded into its organization, McMinn said. By “institutionalizing and standardizing that commitment, we’ve been actually able to really focus on how do we do that in a more efficient way."

To achieve this, Windmill relies on “clarity of objectives” and a “preferred kit of parts.” The kit is Windmill’s approach to strategic supplier relationships, investments into new green technologies, and standards laying out its objectives.

Data is critical to Cadillac Fairview’s effort in moving from vision statements to actions, Jalon said. It informs the decarbonization and long-term capital plans for its portfolio, and helps to measure and verify if decarbonization efforts are meeting its financial and carbon targets.

Understanding daily operations within the buildings is also important, Jalon added. With a particularly cold winter in Canada this year and return-to-office mandates leading to a flood of returning workers, Cadillac Fairview had to manage thermal comfort with higher carbon emissions and the increased odds of equipment malfunctions.

Following up on Jalon’s point, McMinn noted the human impact cannot be forgotten. “If they are not motivated to make decisions that impact something like energy, they’re gonna take the comfort complaint every single time,” she said about companies.

Showing the financial gains of decarbonization

Cadillac Fairview is a long-term asset holder, supporting its focus on sustainability, Jalon said. Decarbonization is also more than marketing.

“I have real wins behind me,” she continued, noting the millions of dollars saved. “It’s not just this theoretical conversation about... future-proofing. It comes down to real, quantifiable wins.”

By being sustainable, Windmill does not achieve direct revenue increases but sees other benefits. The company gains “a material benefit from ease of approvals process, faster approvals with municipalities – because they've seen what we’ve done,” McMinn said.

But it is not always so apparent or feasible for companies to go green. When Mokhallati asked why some organizations don't prioritize sustainability, Jalon pointed to the financial limitations. At a time when capital is limited, companies must be thoughtful and able to expertly explain how decarbonization fits into regulations, the market and investor perspectives, she said.

The building operations and operator are a “massive piece of that whole puzzle,” companies must solve, Michael Guadagnoli, vice-president of sustainable performance at Toronto-based consultancy Ecovert, observed on the panel.

“If we’re trying to decarbonize these buildings, you have to get it right before you can tackle this critical infrastructure,” he said. “It takes time to go through recommissioning properly.” Echoing Jalon, he said data is key, as it allows a company to be proactive with capital planning.

To keep the interest in decarbonization going, sustainability leads must prove the projects have financial returns, Jalon said.

“If we’re in this space and we’re trying to make this meaningful, we need to sell the business case. We also need to get people the tools to be successful.”