Changing the energy upgrade tune is music to the ears of commercial building owners

The increased focus on the sustainability credentials of commercial buildings is being driven by a number of factors, according to AIB’s head of business banking Dublin central, capital markets, Derrick Lynch. These factors include forthcoming legislation, market demand, the high cost of energy and a desire to tackle climate change.

Lynch points out that the EU Energy Performance of Buildings Directive aims to fully decarbonise EU buildings by 2050. “The legislation was approved by MEPs in the European Parliament in March 2024, and will require member states to gradually improve the energy performance of their buildings over the coming years.”

Apart from legislative requirements businesses are increasingly seeking out more efficient and comfortable premises to enhance customer and employee experiences while also reducing their own environmental impact, he adds.

At the same time older and less energy efficient buildings are inherently more expensive to run, with cost considerations supporting a move toward efficiency and sustainability. All of these measures not only reduce energy costs and increase comfort but also improve the Ber rating of buildings, thereby potentially adding to their market value.

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Lynch says AIB is supporting customers with finance to improve the efficiency of their commercial buildings through a number of measures. These include the installation of energy-efficient lighting, boiler replacements with either a more efficient system or an air-source heat pump heating and cooling system, the installation of window blinds with a reflective film and external shading to reduce solar heat gain, new secondary double or triple glazing to improve thermal efficiency by reducing heat loss, and rooftop solar PV to produce a renewable electricity supply.

“Tackling climate change is one of the greatest challenges of our lifetime and we know that businesses are keen to do their part, with an increased focus on ESG credentials not just because it’s the right thing to do but because it makes commercial sense,” he says.

“Businesses can save money through energy efficient upgrades that not only reduce their bills but make their properties more marketable to tenants and buyers seeking green buildings. And with new legislation approaching now is a good time for businesses to consider the carbon footprint of any buildings they own. AIB is supporting customers to explore what steps can be taken to improve their buildings energy ratings to help customers futureproof their business.”

One organisation to benefit from AIB support for its sustainability endeavours is the Royal Irish Academy of Music. The academy has been Ireland’s music conservatoire since 1848 and is a long-standing customer of AIB. Its campus is located on Westland Row in Dublin 2, and has undergone a transformation in the past three years funded by the Government, AIB and philanthropic donations.

The new six-storey facility and recital hall are positioned behind the original Georgian building. It is home to a flexible opera and orchestra rehearsal space; 75 teaching rooms with adjustable acoustics; a state-of-the-art library; a sonic-arts hub for electronic-music composition; a 60-seat lecture hall and a music therapy space.

Sustainability was at the heart of the transformation of these period buildings, says Deborah Kelleher, director of the academy. “The primary requirement was to build a music conservatoire that would stand the test of time, and that could be an inspiring musical home for a broad community of music students and professionals.

“With that in mind certain elements were a must, such as having step-free access, high quality finishes, and acoustically excellent performance spaces, teaching rooms and practice rooms. Sustainability was a key factor in terms of building design. We installed advanced heat pump and heating ventilation and air-conditioning (HVAC) systems, which, along with extensive A-rated insulation and glazing, helps to minimise energy requirements. We were also fortunate to receive excellent furniture donations from AIB in the form of desks, chairs, couches and more.”

The results have been felt both in cost and artistic benefits. “We are delighted with the heat that the A rated building provides while at the same time we have reduced our heating bills,” says Kelleher. “There is a consistency of temperature that makes the care and maintenance of instruments easier and gives our students, staff and visitors a more comfortable experience.

“From the outset AIB were very helpful and collegial,” she says. “Accessing a loan was a crucial part of our financing, and the team in AIB were practical, timely and constructive. In February 2023 we opened the building to the public and the AIB team was there to cheer us on. That memory still makes me smile.”