How investing in sustainable infrastructure drives critical business outcomes

Local and state governments across the country are looking for new ways to stimulate economic development, minimize costs, maximize efficiency and address more than $870 billion in deferred maintenance. One strategic initiative being embraced by government leaders in their pursuit of positive economic outcomes is modernized sustainability. 

Sustainability isn’t just about reducing greenhouse gas emissions and energy consumption, though those results are a critical component to state and localities’ environmental stewardship. Renewable energy and energy efficient solutions powered by data analytics modernize public spaces to better serve citizens while minimizing the financial burden on taxpayers. Overhead costs are lowered, operations are digitized and streamlined, spaces are made more resilient and new employment opportunities are created. Through future-forward digitalization and innovative funding – including the recent Inflation Reduction Act – governments of all sizes can support a healthy planet while reaching their own goals. 

The checklist for sustainable and modern government spaces

Getting started on a sustainability initiative doesn’t have to be difficult. No matter where they are on their journey to greener spaces, local and state governments can harness technology to deliver modernized sustainability that drives the outcomes that matter most to both leaders and constituents. In these five steps, government leaders can be on their way to achieving economic vibrancy through sustainability: 

1. Perform an infrastructure audit: Before any work can begin, both IT and facilities teams must understand where improvements can be made in both digital and physical infrastructure. A precursory evaluation ensures all future implementations align with both current and future needs. 
2. Create digitally enabled environments: By leveraging and integrating energy management systems, streamlined data acquisition tools, digital planning models and decarbonization platforms, IT and facilities teams gain deep insights into their spaces’ overall sustainability. They can identify opportunities for greater efficiency and provide transparent reporting to ensure they are meeting targets. 
3. Address deferred maintenance: By updating both digital and physical infrastructure to more efficient solutions, facilities teams can reap the benefits of modernized environments, including reduced energy waste, increased savings and improved occupant experiences. 
4. Deploy renewable energy sources: When integrated with data-driven energy management systems, these solutions – such as solar photovoltaic panels – can provide new opportunities for government efficiency, including managing carbon offsets, energy supplies, billing and renewable finance services. 
5. Certify and recognize impact: Public transparency is vital to a successful sustainability initiative. By using clear decarbonization dashboards to track quantify progress, government leaders can gain industry-leading certifications and leverage public relations and communications strategies.

By making an investment in data-powered sustainability, local and state governments can make clear progress in their mission to better serve citizens and the fight against climate change.

Maximizing benefits to citizens while minimizing impact on taxpayers

Local and state governments’ sustainability missions should be carried out with the goal of minimizing impact on taxpayers, especially as families around the country grapple with the effects of inflation. This means seeking out innovative funding and procurement mechanisms. For instance, performance contracting allows governments to make sustainable upgrades that can be paid for by the guaranteed savings over a set period of time. Alternatively, services such as net zero as a service enable government leaders to completely outsource the design, implementation, maintenance and reporting of their decarbonization initiatives to a trusted partner. From contingent payment programs to public-private partnerships, there is a procurement mechanism to fit every public entity’s needs. 

Beyond financing methods, local and state governments can also take advantage of federal funds to make critical updates to their digital and physical infrastructure while leaving their budgets intact. As outlined in the American Rescue Plan and the Bipartisan Infrastructure Deal, qualifying government entities can access relief funds for improvement projects that directly support economic recovery, impact public health and modernize infrastructure. Once procured, these dollars can be selectively applied to support public sector organizations, communities and impacted businesses through updates made in both indoor and outdoor spaces.

In addition, the recent Inflation Reduction Act includes the biggest investment in battling climate change in U.S. history, with approximately $30 billion in grants and loans available to support states’ adoption of clean energy. A $27 billion clean energy technology accelerator included in the law funds the deployment of decarbonization technologies, with a high focus on underserved communities. 

The future is bright when sustainability and modernization lead the way

The ideal government entity operates efficiently to benefit citizens, and its infrastructure should do the same. Whether that entity is a small community’s senior center or a state’s bustling capitol building, investing in modern and sustainable infrastructure drives critical community outcomes. With the right strategy, local and state governments can bring their vision for a both modernized and sustainable future to life.

Lisa Brown is Senior National Director for Municipal Infrastructure & Smart Communities at Johnson Controls.