Facilities Management and the Race to Net-Zero

Australia’s net-zero target for 2050 is ambitious and facilities managers are on the frontline of making it a reality.

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For years, sustainability in property meant incremental upgrades: LED lighting, recycling bins, maybe some solar panels. In 2025, the expectations are far greater. Waste, water, and energy management now sit at the centre of building operations, shaping not only environmental outcomes, but also compliance, tenant experience, and long term asset value.

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Energy efficiency is the clearest driver. NABERS and Green Star ratings are no longer “nice to have”, they directly influence leasing, tenant retention, and even financing. Buildings with strong sustainability credentials command higher rents and lower vacancy rates.

Water management is also gaining pace, particularly in urban centres. Smarter leak detection, recycling systems, and irrigation strategies are helping facilities teams meet both regulatory standards and tenant expectations for responsible stewardship.

Then there’s waste. Tenants now expect recycling and circular economy initiatives as standard. What used to be a “green extra” is now a baseline requirement.

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The challenge for facilities managers is balancing these priorities with cost and resource pressures. Labour shortages, rising materials costs, and tight budgets make large scale retrofits difficult. Ignoring sustainability comes with a bigger price: reputational damage, regulatory scrutiny, and declining asset performance.

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According to the Property Council of Australia, buildings that embed sustainability into everyday operations consistently outperform those that don’t, not just environmentally, but financially.

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The role of facilities management is changing. It’s no longer just about keeping the lights on. It’s about ensuring the buildings we manage today are resilient, compliant, and aligned with Australia’s future.