Autonomous AI-driven technology solutions can empower retailers to lead the way for the built environment in reducing energy consumption and achieving climate targets

The retail industry is one of the most energy-intensive sectors, with high consumption and significant carbon emissions. As inflation and electricity costs remain high, brick-and-mortar retailers across the UK continue to struggle daily with the cost of “doing business”. Despite intervention from the government to support businesses, companies have still seen significant increases in costs. Data from the British Retail Consortium shows that shop price inflation reached record highs of 8% in January, up from 7.3%^¹ in the previous month, whilst over 62%^² of firms were forced to raise prices of products to protect profitability.

Meanwhile, operating, energy and maintenance costs of heating, ventilation and air conditioning systems (HVAC) account for a large portion of a building's running cost. According to the International Energy Agency, conventional HVAC systems worldwide are responsible for nearly 20%^³ of buildings’ total electricity usage and makes up a big proportion of most retailers' energy bills.

Reducing energy use makes perfect business sense; it saves money, enhances corporate profile, encourages brand loyalty and adds the sought after positive sustainability dimension to corporate operations. Interestingly, it was reported late last year that supermarket chain Iceland believed it would be easier to temporarily close stores because of unsustainable energy costs. Similarly, in December, the John Lewis Partnership lowered the temperature in its department stores and Waitrose supermarkets dimmed its lights in a bid to minimise rocketing energy bills. This shows that saving energy is one of the simplest ways to help a company to improve cost efficiencies.

Moreover, the opportunity to carry this conversation at a global level should not be dismissed. At the 28th United Nations Climate Change Conference (COP28), taking place in the United Arab Emirates this November, attendees should expect the subject be a frontline item of the agenda. Artificial intelligence (AI) technology is a solution that offers a way to understand building performance in a rapid and dynamic way and can be used to make retail buildings run more efficiently, helping to combat climate change.

Smart HVAC Systems

By deploying AI, the retail industry, especially multi-site retailers and large commercial venues, can achieve significant energy reductions, thus lowering cost and reducing carbon emissions in a short timeframe. AI-powered HVAC systems can reduce energy costs by up to 25%^⁴ and free up facilities managers to take on more value-added tasks. This type of energy management technology makes continuous adjustments in real-time, so an HVAC system works smarter instead of harder.  

In addition, AI-powered HVAC systems have the capacity to remove the old ways of assessments being conducted every six months, 12 months or five years. And in place of fixed maintenance points, facility managers can benefit from more dynamic and autonomous monitoring of buildings and their performance.

By doing so, an AI-driven HVAC system can reduce building maintenance costs by up to 15%, additionally, these systems can autonomously maintain temperature levels based on ambient conditions, ensuring an improvement in customer comfort level by up to 60%.

However, deploying AI and machine learning to enhance how buildings efficiently use energy for heating and ventilation is only the first step in the evolution of the real estate industry. Consumers are increasingly calling on retailers to lead the way in the green built environment revolution. Shoppers are becoming more attuned to environmental issues and are inclined to purchase products from brands that take action to reduce emissions. Wasteful properties are a critical issue to tackle as, unlike fuel-powered vehicles, they will likely continue to exist for many decades to come.

Decarbonising the Retail Industry

As we know conventional HVAC systems are energy-intensive, costly, and bad for the environment. When it comes to fighting climate change, fast, scalable, and impactful solutions are key.

Looking ahead to COP28, leaders and technology innovators should collaborate to effectively speed up the adoption of safe, smart, and low-carbon solutions.

Furthermore, adoption of autonomous decarbonization tech that is AI-driven is crucial. Especially for the retail industry, embracing a solution of this kind ensures they remain competitive, address consumers increasingly sophisticated demands and reduce the impact of retail real estate on the environment.

Sources:
1.   https://brc.org.uk/news/corporate-affairs/inflation-hits-new-heights/
2.   3 in 4 Firms Raising Prices as Chancellor warned of ‘Cost of Doing Business Crisis
3.   The Future of Cooling – Analysis - IEA
4.   ABB Smart Building’s AI-Powered SaaS Increases Energy Efficiency, Reduces Carbon Footprint 

To find out more about BrainBox AI and the services they provide to the retail industry, click here.

This article was also published in The Retailer, our quarterly online magazine providing thought-leading insights from BRC experts and Associate Members.

VIEW THE RETAILER