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A successful ecological transition thanks to thoughtful budgeting
In Québec and everywhere else, mobilization to reduce our environmental impact and combat climate change has become a priority. Through this movement, companies are launching environmental, social and governance (ESG) policies to adopt sustainable and responsible practices. As a result, energy efficiency and sustainability initiatives are taking on a strategic role for corporate leaders, influencing decisions on budget planning.
ESG practices: a strategic turning point
Implementing environmental goals requires consistency between overall strategy and the budgets allocated to operations or new construction developments. Precise, action-oriented budget planning is essential to overcome traditional limitations and turn fully to sustainable initiatives.
Managing existing buildings: a long-term vision
For existing buildings, forecasting environmental audits (energy, water, waste, etc.) and certifications (LEED, BOMA Best, etc.) costs is crucial. These costs must be integrated into the property manager’s operating budgets (OPEX). Investments in equipment replacement or installation must be planned in capital budgets (CAPEX). We strongly recommend to include these costs in five-year or even ten-year plans. Why do we need to do this? For ensuring a path to carbon neutrality and other ambitious goals of ESG policies.
New builds: integrate sustainability right from the design stage
For new-build projects, it’s essential to include sustainability initiatives and environmental certification costs in the early planning stages. This includes analyzing feasibility, choosing the right certification, and forecasting the costs associated with energy optimization.
Another important element is commissioning. Although often overlooked, it guarantees the quality and energy performance of a project and should be taken into account from the outset.
Costs: but also benefits
Environmental initiatives are investments that add significant value to real estate properties. In addition to costs, it is therefore important to assess the benefits, whether in terms of environmental certifications attractiveness or energy savings initiatives. A complete analysis, offered by our team, enables stakeholders to measure the real financial impact and optimize the profitability of these actions.
Opportunities: how to maximize them with incentive programs
Many programs are available to support environmental initiatives, particularly energy conservation and decarbonization. Offered by organizations such as Hydro-Québec, Énergir and Transition énergétique Québec, these programs are available for both existing buildings and new construction and help accelerate the return on investment. Integrating these incentives into budget planning, with the support of our specialists, ensures maximize returns on investment.
Budget planning: an essential step
An effective budget strategy, drawn up with specialists, ensures consistency between environmental ambitions and financial resources. This approach enables realistic budgets to be properly planned, including the amounts required for each initiative to be implemented. This way, we say goodbye to unexpected expenses!
So, what’s the bottom line? Adopting an ambitious ESG strategy is within the reach of any company ready to invest in a sustainable future. With proper planning and support from incentive programs, energy efficiency initiatives and sustainability projects address environmental challenges and contribute to long-term success and competitiveness of your portfolio.